Which term refers to the allocation of the cost of an asset over the asset's useful life?

Question

Quizplus · Accepted Answer

Depreciation refers to the allocation of the cost of an asset over the asset's useful life. Accrual refers to recording revenues and expenses when they are earned or incurred, regardless of when they are received or paid. Deferral refers to the postponement of recognition of an expense or revenue to a future period. Expiration is not a term used in accounting for the allocation of the cost of an asset.

Which Term Refers to the Allocation of the Cost of an Asset