Read Mode
Depreciation
The fall in the value of an asset is:
Explanation and memory cue
Depreciation is the accounting term for the fall in the value of an asset over time due to wear and tear, usage, or obsolescence. It is a systematic, non-cash allocation of the cost of a tangible fixed asset over its useful life, reflecting the asset's gradual loss in value. This matches the expense with the revenue generated by the asset and provides tax benefits. Therefore, option C, 'Depreciation,' is the correct answer.