The cost of using a long-term asset (such as a vehicle)that will be used in a business for several years is spread over the asset's useful life.Its annual allocated cost appears on the income statement as a(n)_____ expense.
A)receivable
B)inventory
C)depreciation
D)variable

Question

Quizplus · Accepted Answer

Depreciation expense is the correct term for spreading the cost of a long-term asset over its useful life. This accounting practice reflects the asset's consumption, wear and tear, or obsolescence over time.

The Cost of Using a Long-Term Asset (Such as a Vehicle)that