Which of the following expenses is most closely associated with tangible long-lived assets?

Question

Quizplus · Accepted Answer

Depreciation is the expense associated with tangible long-lived assets. It represents the allocation of the cost of the asset over its useful life, reflecting the wear and tear and obsolescence that will ultimately limit the asset's usefulness. Accumulation is not an expense but refers to the process of adding together amounts over time. Depletion is an expense associated with natural resources such as oil or timber. Interest is a cost of borrowing money, not an expense associated with tangible long-lived assets.

Which of the Following Expenses Is Most Closely Associated with Tangible