Depreciation is
A)a decrease in the fair market value of an asset.
B)an expense that is incurred during an accounting period.
C)a method of saving cash to replace plant assets.
D)added to the cost of equipment on the balance sheet.
E)shown on the balance sheet as a liability.

Question

Quizplus · Accepted Answer

Depreciation is an expense that is incurred during an accounting period as a result of the wear and tear, deterioration, or obsolescence of a tangible asset over its useful life. It is not a decrease in the fair market value of an asset, a method of saving cash to replace plant assets, added to the cost of equipment on the balance sheet, or shown on the balance sheet as a liability.

Depreciation Is