The process of spreading the cost of a fixed asset over the asset's useful life is called
A) expensing.
B) depreciation.
C) apportioning.
D) crediting.
E) distributing.

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the cost of a fixed asset over its useful life. This method of accounting allows companies to match the cost of the asset with the revenue it generates over time, which helps to accurately reflect the company's financial performance. The other choices (expensing, apportioning, crediting, and distributing) do not accurately describe this process.

The Process of Spreading the Cost of a Fixed Asset