Derek,an accountant,allocates the cost of a piece of earth-moving equipment over a specific period of time.Based on the given information,it can be concluded that Derek is implementing the process of:
A)cost plus pricing.
B)appreciation.
C)discounting.
D)expense designation.
E)depreciation.

Question

Quizplus · Accepted Answer

Derek is implementing the process of depreciation, which involves allocating the cost of a tangible asset over its useful life. This is a common accounting practice for handling long-term assets like earth-moving equipment.

Derek,an Accountant,allocates the Cost of a Piece of Earth-Moving Equipment