passwella.
Menu

WAEC Financial Accounting 2004 Question 13

Question 13

Depreciation

Which of the following terms describes the provision made for the loss in the value of an asset that has a legal life span?

  1. A.Capitalization
  2. B.Depreciation
  3. C.Depletion
  4. D.Amortization
Show the answer and explanation

Answer: D (Amortization)

Explanation

Writing off assets with a fixed legal life, such as leases and patents, is called amortisation.