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Which of the following best explains depreciation?

Which of the following best explains depreciation?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Wear and tear of assets
  • B Increase in labour productivity
  • C Increase in national output
  • D Growth in export activities
Correct Answer: Option A
Explanation:
Machinery and equipment lose value gradually because of usage and aging during production processes.

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