Which of the following is incorrect? Depreciation is calculated:
A) on a systematic allocation basis.
B) over the asset's estimated useful life.
C) to prevent losses.
D) on a depreciable asset.

Question

Quizplus · Accepted Answer

Depreciation is not calculated to prevent losses, but rather to allocate the cost of a depreciable asset over its useful life. The purpose of depreciation is to match the cost of the asset to the revenue it generates over time.

Which of the Following Is Incorrect? Depreciation Is Calculated