Depreciation is the process of

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the cost of an asset to expense over its useful life in a rational and systematic manner. Option A is incorrect because fair value is not relevant in the process of depreciation. Option B is incorrect because it suggests an increase in value over the useful life, whereas depreciation is a decrease in value. Option D is incorrect because writing down an asset to its real value each accounting period is not an accurate way to account for the asset's decrease in value over time.

Depreciation Is the Process of