Which of the following is correct?

Depreciation is the diminution in the value of fixed assets Amortisation is writing off the amount relating to current assets Both 1 and 2 None of the above

Depreciation is the diminution in the value of fixed assets

Amortization is the practice of spreading an intangible asset's cost over that asset's useful life. Depreciation is the expensing of a fixed asset over its useful life.