Depreciation Expense is based on estimates of ________.
A)the value of the asset
B)the use and purpose of the asset
C)the life and pattern of the asset's use
D)the warranty that comes with the asset

Question

Quizplus · Accepted Answer

Depreciation Expense is based on estimates of the life and pattern of the asset's use. It refers to the systematic allocation of the cost of a tangible asset over its useful life. Other factors such as the value of the asset, the use and purpose of the asset, and the warranty that comes with the asset may be considered, but they are not the primary basis for determining the depreciation expense.

Depreciation Expense Is Based on Estimates of ________