The adjustment that is made to allocate the cost of a building over its expected life is called:
A)depreciation expense.
B)residual value.
C)accumulated depreciation.
D)None of these answers is correct.

Question

Quizplus · Accepted Answer

Depreciation expense is the accounting method used to allocate the cost of a building over its expected life. Residual value is the estimated value of the asset at the end of its useful life, and accumulated depreciation is the total amount of depreciation expense that has been recognized for the asset over time. None of these options fully answer the question except for choice A.

The Adjustment That Is Made to Allocate the Cost of a Building