Question

    Which of the following statements is correct regarding Depreciation? 

    I. Depreciation is termed as loss of value of fixed assets due to wear and tear during its useful life. 

    II. Depreciation does not take into account unexpected or sudden destruction. 

    A Only I Correct Answer Incorrect Answer
    B Both I and II Correct Answer Incorrect Answer
    C Neither I nor II Correct Answer Incorrect Answer
    D Only II Correct Answer Incorrect Answer

    Solution

    The correct answer is B

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