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Commerce · Q185

Accounting

Graduate and Post Graduate · Commerce · question 185

Q185

An increase in the value of fixed asset is referred to as:

A.
Depreciation
B.
Appreciation
Answer
C.
Market capitalization
D.
Reverse depreciation

Answer: Option B

Solution

Answer: Option B
Solution:
An increase in the value of fixed asset is referred to as Appreciation. Appreciation, in general terms, is an increase in the value of an asset over time. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates.