A regular and systematic reduction in income that transfers asset value to expense over time is called
A)bankruptcy.
B)depreciation.
C)liquidity.
D)opportunity cost.

Question

Quizplus · Accepted Answer

A regular and systematic reduction in income that transfers asset value to expense over time is called depreciation. This is a common accounting method used to spread the cost of an asset over its useful life. It reduces the value of the asset on the balance sheet and increases expenses on the income statement.

A Regular and Systematic Reduction in Income That Transfers Asset