Depreciation allocates the cost of a long-lived asset to the accounting periods over which it is used.

Question

Quizplus · Accepted Answer

This statement is true. Depreciation is the systematic allocation of the cost of a long-lived asset (such as a building, equipment, or vehicle) over the estimated useful life of the asset. This is done to match the cost of the asset with the accounting periods in which it provides benefits to the company.

Depreciation Allocates the Cost of a Long-Lived Asset to the Accounting