Question on: JAMB Accounting - 2019

A fall or decrease in the economic service potential of an asset as a result of wear, tear and obsolescence is referred to as

A

Estimate

B

Depreciation

C

Asset

D

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Correct Option: B

Depreciation is the gradual decrease in the economic value of the capital stock of a firm, nation or other entity, either through physical depreciation, obsolescence or changes in the demand for the services of the capital in question. Wikipedia

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