Depreciation expense is used to:
A) allocate costs to all departments of the firm.
B) determine when an asset is fully paid off.
C) allocate historical cost over the life of an asset.
D) equate the historical cost and market values of an asset.

Question

Quizplus · Accepted Answer

Depreciation expense is used to allocate the historical cost of an asset over its useful life. It represents the wear and tear, and decline in value of the asset over time.

Depreciation Expense Is Used To