Allocating the cost of using long-term assets over their useful lives is called
A)allocation expense.
B)depreciation expense.
C)a general expense.
D)asset use expense.

Question

Quizplus · Accepted Answer

Depreciation expense is the correct term used for allocating the cost of using long-term assets over their useful lives. Choice A is incorrect because allocation expense is a general term used for all expenses such as direct or indirect costs. Choice C is incorrect because general expense is a term used for expenses that are not related to a specific function or asset. Choice D is incorrect because asset use expense is not a commonly used accounting term.

Allocating the Cost of Using Long-Term Assets Over Their Useful