Allatoona Ceramics recently purchased a new kiln for $49,000. Allatoona Ceramics is allowed to charge a portion of the company's cost during its useful life against the profits it generates. What is this practice called?

Question

Quizplus · Accepted Answer

The practice of charging a portion of an asset's cost against profits during its useful life is known as "depreciation."

Allatoona Ceramics Recently Purchased a New Kiln for $49,000