GCEAgricultural ScienceFarm Management and Records2022

In farm accounting, the term 'depreciation' refers to the

Adecrease in the market price of farm produce due to oversupply
Bgradual reduction in the value of a farm asset over time due to wear and useCORRECT
Closs of soil nutrients as a result of continuous cropping
Dreduction in farm profit caused by rising input costs
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Toaster Teacher
Why the answer is B, and why the others tempt you.
Depreciation is an accounting concept that describes the gradual loss in value of a fixed asset (such as a tractor or building) over its useful life due to wear, tear, and obsolescence. It is recorded as an expense in the farm's profit and loss account to reflect the true cost of using the asset.
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