Depreciation is based on the principle of:
A)allocation.
B)appropriation.
C)lower of cost or market.
D)approbation.

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the cost of a tangible asset over its useful life. Therefore, depreciation is based on the principle of allocation. The cost of the asset is spread over its useful life, and the expense is recognized in each accounting period that the asset is used.

Depreciation Is Based on the Principle Of