For accounting purposes,depreciation refers to the process of ________.
A) allocating the cost of a plant asset to expense over its useful life
B) recording the decline in the market value of an asset to its book value
C) estimating an asset's current market value
D) determining the selling price of an asset

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the cost of a long-term or capital asset to expense over its useful life rather than charging the entire cost to expense in the period of acquisition. This is done to match the cost of the asset with the periods in which it helps generate revenue.

For Accounting Purposes,depreciation Refers to the Process of ________