What is an arbitrary,but regular and systematic method used to take an asset value as an expense for the purpose of calculating net income or loss?
A)Book value
B)Depreciation
C)Arm's length transaction
D)Disposal value

Question

Quizplus · Accepted Answer

Depreciation is an arbitrary, but regular and systematic method used to take an asset value as an expense for the purpose of calculating net income or loss. It is based on the principle of matching expenses with revenues, where the cost of the asset is allocated over its useful life. This method helps to spread out the cost of the asset over the period of its use, rather than taking the full expense in the year of purchase. Other options are not relevant to the given scenario.

What Is an Arbitrary,but Regular and Systematic Method Used to Take