GAAP requires that the cost of a plant asset be
A) totally expensed in the first year of the plant asset's life.
B) expensed over ten years.
C) expensed over the plant asset's useful life.
D) expensed over the plant asset's legal life.

Question

Quizplus · Accepted Answer

GAAP (Generally Accepted Accounting Principles) requires that the cost of a plant asset be allocated over its useful life through depreciation. This method reflects the consumption of the asset's economic benefits over time.

GAAP Requires That the Cost of a Plant Asset Be