Question

Complete the final sentence with the best choice. Business assets have limited useful lives. After being used for a number of years, they must be retired from the business regardless of efforts to maintain or repair them. At the time of retirement, the assets may have a small trade-in or scrap value, or could be worthless. In either case, there is a loss in the value of the property. This loss is called _____.

Answer 1

Answer:

Depreciation

Explanation:

A business asset is an item which a company owns or leases in order to operate. It can be physical, tangible goods, such as vehicles, computers, office furniture etc.

These assets actually create value in your business - for example, intellectual property, goodwill etc.

Scrap value refers to the worth of an asset when it is deemed no longer usable.

Depreciation refers to the reduction in the value of an asset over time.

Depreciation refers to a loss in the value of the property after being used for a number of years.