passwella.
Menu

WAEC Financial Accounting 2002 Question 40

Question 40

Depreciation

Depreciation is

  1. A.cost of repairs incurred on a fixed asset
  2. B.a charge for the wear and tear of fixed assets
  3. C.the cost incurred on replacing a fixed asset
  4. D.provision for loss of fixed asset.
Show the answer and explanation

Answer: B (a charge for the wear and tear of fixed assets)

Explanation

Depreciation charges part of an asset's cost each year for wear and tear.