California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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What is a good definition of total depreciation from all sources?

Accumulated wear and tear
Accrued depreciation
Functional obsolescence
Economic obsolescence

The correct answer is: Accrued depreciation

Total depreciation from all sources refers to the combined loss in value of an asset due to factors such as accumulated wear and tear (option A), functional obsolescence (option C), and economic obsolescence (option D). While these are all sources of depreciation, only accrued depreciation (option B) encompasses the total loss in value of an asset from all sources. Therefore, option B is the best definition of total depreciation.