Depreciation of a long-lived asset is the process of
A) valuing a long-lived asset at its fair value.
B) increasing the cost of a long-lived asset over the periods the asset benefits.
C) allocating the cost of a long-lived asset to an expense over the periods the asset provides a benefit to the entity.
D) writing down a long-lived asset to its real value each accounting period.

Question

Quizplus · Accepted Answer

Depreciation is the systematic allocation of the cost of a tangible, long-lived asset over its useful life. It reflects the consumption of the asset's economic benefits over time.

Depreciation of a Long-Lived Asset Is the Process of