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    Question

    Which of the following statements is correct regarding

    Depreciation?┬а I. Depreciation is termed as loss of value of fixed assets due to wear and tear during its useful life.┬а II. Depreciation does not take into account unexpected or sudden destruction.┬а
    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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