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    Question

    The primary cause of depreciation

    is:
    A Fluctuation in market price Correct Answer Incorrect Answer
    B Physical wear and tear Correct Answer Incorrect Answer
    C Fall in the value of money Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer

    Solution

    While other factors can influence an asset's value, the fundamental cause of depreciation is the physical deterioration of the asset through use and exposure.

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