MP Board · Class 11 · Accountancy · Depreciation, Provisions and ReservesWhich of the following is NOT a cause of depreciation?
Step-by-Step Solution
Fluctuation in market price is not a cause of depreciation; depreciation deals with the wear and tear and book value reduction of the asset itself.
Detailed Options Breakdown
Option : Wear and tear
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Depreciation, Provisions and Reserves.
Option 1: Obsolescence
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Depreciation, Provisions and Reserves.
Option 2: Fluctuation in market price (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 3: Efflux of time
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Depreciation, Provisions and Reserves.
💡 Study Guide: This question tests core syllabus concepts from Depreciation, Provisions and Reserves. For formulas, key summaries, and mock exam reference guides, read the full Depreciation, Provisions and Reserves Revision Notes.