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What is the term for the loss of value of an improvement due to functional inadequacies, often caused by age or poor design? A) Appreciation B) Depreciation C) Amortization D) Equilibration
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What is the term for the loss of value of an improvement due to functional inadequacies, often caused by age or poor design?

A) Appreciation
B) Depreciation
C) Amortization
D) Equilibration

User Brian Bruman
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Final answer:

Depreciation is the term for the loss of value of an improvement due to functional inadequacies, often caused by age or poor design.

Step-by-step explanation:

Depreciation is the term for the loss of value of an improvement due to functional inadequacies, often caused by age or poor design. It is commonly used in accounting and refers to the reduction in the value of an asset over time. For example, if a building is not properly maintained or becomes outdated, its value may decrease due to functional inadequacies.

User James King
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