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

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

1. Depreciation
2. Appreciation
3. Market capitalization
4. Reverse depreciation

Answer: Appreciation

An increase in the value of the 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. This is the opposite of depreciation, which is a decrease over time.