The expense created by allocating the cost of plant and equipment to the periods in which they are used, representing the expense of using the assets, is called
A) Accumulated depreciation
B) The cash basis of accounting
C) The matching principle
D) Depreciation
E) Allowance for depreciation

Question

Quizplus · Accepted Answer

Depreciation is the accounting process of allocating the cost of tangible assets over their useful lives, representing the expense of using these assets.

The Expense Created by Allocating the Cost of Plant and Equipment