Depreciation is a process of
A) asset devaluation.
B) cost accumulation.
C) cost allocation.
D) asset valuation.

Question

Quizplus · Accepted Answer

Depreciation is a process of allocating the cost of a tangible asset over its useful life. This means spreading out the cost of the asset over the periods in which it is used, instead of expensing the full cost in the year it was purchased. This is done to match the cost of the asset with the revenue it generates, and to accurately reflect the decrease in value of the asset as it ages and is used.

Depreciation Is a Process of