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:
A)Asset valuation.
B)Asset audits.
C)Appreciation.
D)Depreciation.

Question

Quizplus · Accepted Answer

Accounting recognizes the decrease in the value of the assets over time and records a portion of the cost of the asset as an expense each year through the use of depreciation. Asset valuation involves determining the worth of an asset, asset audits are checks to ensure the accuracy of financial statements, and appreciation refers to the increase in the value of an asset over time. Therefore, the correct choice is option D, depreciation.

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