The process of spreading the costs of long-lived assets such as buildings and equipment over the total number of accounting periods in which they are expected to be used is called _____.
A)depreciation
B)gross profit
C)budget
D)net income
E)revenue

Question

Quizplus · Accepted Answer

Depreciation is the accounting process of allocating the cost of tangible assets over their useful lives. It reflects the decrease in value of the asset over time due to use, wear and tear, or obsolescence.

The Process of Spreading the Costs of Long-Lived Assets Such