Which of the following best describes depreciation?
A) The process of increasing the value of fixed assets over time
B) The process of deducting operating expenses from the value of fixed assets
C) The process of reducing the value of fixed assets over time
D) The process of distributing the cost of liabilities over time
E) The process of distributing the cost of intangible assets over time

Question

Quizplus · Accepted Answer

Depreciation is the process of reducing the value of fixed assets over time due to wear and tear, obsolescence, or other factors that cause the asset's usefulness to decline.

Which of the Following Best Describes Depreciation