Depreciation refers to the systematic allocation of the depreciable amount of a depreciable asset over its useful life.

Question

Quizplus · Accepted Answer

Depreciation is the systematic allocation of the cost of a fixed asset over its useful life. The depreciable amount is the cost of the asset less its residual value. Depreciation is used to spread the cost of the asset over the period of its use, so as to match the expense with the revenue generated by its use.

Depreciation Refers to the Systematic Allocation of the Depreciable Amount