Depreciation is the systematic allocation of the cost of a non-current asset over its useful life, reflecting the period it is expected to generate revenue.

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Depreciation Is

Question 4

Multiple Choice

Depreciation is:

A) A way of setting aside money to provide for the eventual replacement of non-current assets
B) A way of writing off the cost of non-current assets over their estimated revenue-generating period
C) The fall in value of non-current assets over their estimated useful economic lives
D) The writing off of the cost of non-current assets over their estimated useful economic lives in ever decreasing amounts.

Correct Answer: