Depreciation Factors for Non-Current Assets Steps:

• Identify depreciation as the systematic allocation of an asset's cost over its useful life due to wear, obsolescence, or time.
• Recall key causes: physical deterioration from use (statement 2), technological or economic obsolescence (statement 4).
• Eliminate irrelevant factors like initial purchase (statement 1) or market value changes unrelated to usage (statement 3).
• Match correct causes to option D, which selects statements 2 and 4.

Why D is correct:

• Depreciation reflects asset value loss from usage and obsolescence, per accounting standards like IAS 16, directly linking to statements 2 and 4.

Why the others are wrong:

• A includes irrelevant statements 1 and 3, which do not cause depreciation.
• B pairs usage (2) with non-factor 1.
• C omits usage (2) and includes non-factor 3.

Not enough information on exact statements 1-4 to confirm details.

Final answer: D