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Which is NOT a reason for asset value decreasing over time?
AWear and tear use
BOwner's annual bonus
CObsolescence change
DEfflux of time
Answer & Solution
Correct answer: B. Owner's annual bonus
1. Asset values decrease due to wear and tear, time, obsolescence, market decline, and depletion.
2. Owner's bonus payment is unrelated to asset value.
3. Hence option D is the odd one out.
_Source: ICAI BoS Foundation Paper 1, Ch 5 "Depreciation & Amortisation", §1.1 ¶2_
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