- 1 Marks
Question
The fall in the value of an asset which does not result from use or age, but from change in technology, taste, or fashion is called:
Answer
Obsolescence
Explanation:
The correct answer is Obsolescence because it refers to the decline in the value of an asset due to changes in external factors like technology, preferences, or fashion, rather than from wear and tear.
- Tags: Assets, Depreciation, Obsolescence
- Level: Level 1
- Topic: Depreciation
- Series: NOV 2012
- Uploader: Theophilus