________ is the allocation of the cost of an asset over the asset's useful life.

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the cost of an asset over its useful life. This is done in order to match the cost of the asset with the revenue that it generates, rather than expensing the entire cost in the period of purchase. Accrual refers to recognizing revenues and expenses when earned or incurred, regardless of when cash is received or paid. Deferral refers to delaying the recognition of revenues and expenses until a later period. Expiration is not a term commonly used in accounting.

________ Is the Allocation of the Cost of an Asset