Depreciation:
A)Measures the decline in market value of an asset.
B)Measures physical deterioration of an asset.
C)Is the process of allocating the cost of a plant asset to expense.
D)Is an outflow of cash from the use of a plant asset.
E)Is applied to land.

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the cost of a plant asset to expense over its useful life. It does not measure market value or physical deterioration, and it is not an outflow of cash. Depreciation is not applied to land, as land is not a depreciable asset.