Depreciation spreads the original cost of a non-current asset over its useful life, but it cannot be considered a precise measure as it is based on forecasts of future outcomes.

Question

Quizplus · Accepted Answer

Depreciation is an estimate and not an exact measure, as it is based on assumptions about the useful life, residual value, and expected future performance of the asset. These factors may change in reality, making the original depreciation estimate inaccurate.

Depreciation Spreads the Original Cost of a Non-Current Asset Over