The statement that best describes the nature of accounting depreciation is:

Question

Quizplus · Accepted Answer

Accounting depreciation is an allocation of the cost of the asset over its estimated useful life. It represents the systematic and rational allocation of the cost of an asset over its useful life, based on the expectation that the asset will decline in value or usefulness over time. It is not a measure of market value or physical efficiency, nor is it directly related to tax deductions.

The Statement That Best Describes the Nature of Accounting Depreciation