Depreciation is generated due toGroup of answer choicesIncrease in the value of liabilityWear and tearDecrease in capitalDecrease in the value of assets

Depreciation is generated due to the wear and tear of assets.

Here's a step-by-step explanation:

1. Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy.

2. It is an estimate of the reduction in value incurred by owning and using an asset over a period of time.

3. This reduction in value is primarily due to factors like wear and tear. For example, a vehicle will depreciate over time due to usage, wear and tear, and obsolescence.

4. Therefore, the correct answer to your question is "Wear and tear".

5. It's important to note that depreciation does not directly affect cash flow, but it does reduce the value of an asset on the balance sheet.

6. Depreciation is not related to an increase in the value of liability or a decrease in capital. It is a decrease in the value of assets, but it's specifically due to wear and tear, not just any decrease.