Depreciation can best be described as a method of

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the cost of assets to the periods in which they are used, which allows for the matching of expenses with revenues. This method helps to calculate the decrease in the value of the asset over time due to usage, wear and tear, age, and obsolescence. By spreading the cost over the expected useful life of the asset, it reduces the carrying cost of the asset on the balance sheet and helps in calculating the accurate net income for the accounting period.

Depreciation Can Best Be Described as a Method of