Which of the following terms refers to the cost of an equipment allocated as an expense over its estimated useful life?
A) Sunk cost
B) Depreciation
C) Adjustments
D) Book value
E) Mixed cost

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the cost of equipment (or other tangible assets) as an expense over its estimated useful life. This is done to accurately reflect the decline in value or usefulness of the equipment over time.

Which of the Following Terms Refers to the Cost of an Equipment