Accounting recognizes that assets,such as machinery and buildings,lose value over time.Accountants will record a portion of the cost of an asset as an expense each year through the use of:

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Quizplus · Accepted Answer

The process of recording a portion of the cost of an asset as an expense each year is called amortization. This is done to reflect the fact that assets lose value over time. Asset valuation and audits are processes for determining the value of an asset, while appreciation refers to an increase in the value of an asset over time.

Accounting Recognizes That Assets,such as Machinery and Buildings,lose Value Over