The book value of plant assets (other than land):
A) Increases with the passage of time.
B) Decreases with the passage of time.
C) Remains the same with the passage of time.
D) May increase or decrease depending upon the economy.

Question

Quizplus · Accepted Answer

The book value of plant assets (other than land) decreases with the passage of time because of the accumulation of depreciation, which is the allocation of the cost of the asset over its useful life. As the asset ages, it becomes less valuable and therefore, its book value decreases.

The Book Value of Plant Assets (Other Than Land)