Exams › IBPS PO › General Awareness

Depreciation means

1. A permanent fall in the value of fixed assets arising through wear and tear from the use of those assets in business
2. A temporary fall in the value of fixed assets arising through wear and tear from the use of those assets in business
3. A permanent rise in the value of fixed assets arising through wear and tear from the use of those assets in business
4. A temporary rise in the value of fixed assets arising through wear and tear from the use of those assets in business

Correct answer: A permanent fall in the value of fixed assets arising through wear and tear from the use of those assets in business

Solution

Depreciation refers to the systematic and permanent reduction in the value of fixed assets due to wear and tear, passage of time, or obsolescence. It is an accounting concept used to allocate asset cost over its useful life.

Related IBPS PO General Awareness questions

• A company produces bottles. A distributor gets ₹1000 commission for every 50 bottles sold. He marks the price 30% above cost and allows a discount of Y%. He sells X bottles, which are 40 fewer than received. Total production cost = ₹7.8 lakhs. Commission = ₹7000. Profit = ₹1.4 lakhs. If the company added the given commission to the cost price and he gave a stock of (X + 450) bottles to another distributor who sold all the stock, then find the new cost price of one bottle.
• Which of the following is not a qualitative characteristic of accounting information?
• An invoice does not contain
• A pen is marked 50% above cost price. After a discount of ₹100, the profit is ₹100. What is the selling price?
• If 2,00,000 right shares of face value ₹10 are issued at a 20% premium, what is the correct journal entry for this transaction?
• Under the Written Down Value (WDV) method, depreciation is calculated

⚔️ Practice IBPS PO General Awareness free + battle 1v1 →