Which of the following most appropriately describes depreciation?
A) Decline in value of plant asset
B) Allocation of cost of plant asset
C) Physical deterioration of plant asset
D) Gradual obsolescence of plant asset

Question

Quizplus · Accepted Answer

Depreciation is the allocation of the cost of a plant asset over its useful life. It is not related to physical deterioration or obsolescence, although those factors may be taken into consideration when determining the asset's useful life.

Which of the Following Most Appropriately Describes Depreciation