The principal of how an asset's value declines over time is called:
A) amortization.
B) depreciation.
C) inflation.
D) deflation.

Question

Quizplus · Accepted Answer

The principal of how an asset's value declines over time is called depreciation. Amortization is the process of spreading out the cost of an intangible asset over its useful life, inflation refers to the general increase in prices across an economy, and deflation refers to the general decrease in prices across an economy.

The Principal of How an Asset's Value Declines Over Time