Question

Your company buys a car, and its value goes down over time. What is that process called? A. Leasing B. Depreciation C. A unit of sale D. Interest Please select the best answer from the choices provided A B C D

Answer 1

The answer is B Depreciation

Answer 2

The answer is B. Depreciation

Step-by-step explanation:

Depreciation is an economic phenomenon that involves a reduction in the value of a physical asset. This phenomenon causes products such as clothes, furniture, cars, among others to cost less after these have been bough. This is the result of use or deterioration, for example, a chair deteriorates as it used often and therefore its functionality and quality is not the same than before or the result of new versions available, for example, even if a computer is new if there are new versions of it, the old computer loses part of its value. Thus, the process described refers to depreciation.