The process of allocating the original cost of an investment over the years of use is known as _______.
A)interest
B)balance
C)depreciation
D)amortization

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the original cost of an investment over the years of use. Option A is incorrect as interest refers to the amount paid for borrowing money. Option B is incorrect as balance refers to the amount of money in an account after accounting for all transactions. Option D is incorrect as amortization is the process of spreading the cost of an intangible asset over its useful life.

The Process of Allocating the Original Cost of an Investment