For accounting purposes,depreciation refers to the ________.
A)method of allocating the cost of a plant asset to expense it over its useful life
B)method of declining the market value of an asset to its book value
C)method of estimating an asset's current market value
D)process of selling a used asset

Question

Quizplus · Accepted Answer

Depreciation is the method of allocating the cost of a plant asset to expense it over its useful life. This is done to match the cost of the asset with the revenue it generates over its useful life. It does not refer to declining market value, estimating market value, or selling a used asset.

For Accounting Purposes,depreciation Refers to the ________