Depreciation matches the recognition of a long lived asset's cost with its service life. An example of this kind of asset would be:

Question

Depreciation matches the recognition of a long lived asset's cost with its service life.  An example of this kind of asset would be:

Quizplus · Accepted Answer

Depreciation matches the recognition of a long lived asset's cost with its service life. Machinery for a factory is a long lived asset that has a significant cost and depreciates over time as it is used to produce goods. Office supplies, raw materials, and phone jacks are not considered long lived assets and would not be subject to depreciation.

Depreciation Matches the Recognition of a Long Lived Asset's Cost