Which of the following statements about property, plant, and equipment and depreciation is true?
A) Plant, property, and equipment assets are sold to customers in the normal course of business.
B) Accounting requires that the cost of a depreciable asset be recorded as an expense over time periods benefited by that asset.
C) Accumulated depreciation is the total amount of depreciation that has been recorded on a depreciable asset in the current period.
D) Accounting and general usages of the term depreciation are the same.
E) All of the above statements are true.

Question

Quizplus · Accepted Answer

Depreciable assets, such as property, plant, and equipment, are capitalized and their cost is allocated over their useful lives as depreciation expense. This reflects the usage and economic benefits derived from the asset over time, rather than being expensed immediately when purchased.

Which of the Following Statements About Property, Plant, and Equipment