Which statement about depreciating non-current assets with a limited useful life is true?
A) The cost of a depreciable asset less accumulated depreciation is the carrying amount of the asset.
B) The carrying a mount of a depreciable asset is always equal to its market value because depreciation is a valuation method.
C) The balances of Accumulated depreciation and Depreciation expense should always be equal.
D) None, all statements are false.

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating the cost of an asset (less final sale proceeds) to expense over its useful life. From an accounting point of view, the acquisition of depreciable non-current assets is essentially a long term prepayment for economic benefits. Therefore, there is a need to make adjusting entries for depreciation expense periodically.

Which Statement About Depreciating Non-Current Assets with a Limited Useful