The ware and tear of a fixed assets of a company which is chargeable to company’s financial statement is called ------------------------------
Question 1 Report
The ware and tear of a fixed assets of a company which is chargeable to company’s financial statement is called ------------------------------
Answer Details
The correct answer is "depreciation".
Depreciation is a non-cash expense that represents the wear and tear of a fixed asset over time. Fixed assets are long-term assets, such as buildings, machinery, and equipment, that are used to produce goods or services. Depreciation is used to spread the cost of these assets over their useful life, which is typically several years.
Depreciation is important because it reduces the value of an asset on a company's balance sheet, which in turn affects its financial statements. By including depreciation in its financial statements, a company can better reflect the true cost of using its assets, which can help investors and other stakeholders make more informed decisions.
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