Allocation of the historic costs of fixed assets against the annual revenue they generate is called ________.
A) arbitraging
B) securitization
C) depreciation
D) amortization

Question

Quizplus · Accepted Answer

Depreciation is the allocation of the historical cost of a fixed asset over its useful life against the annual revenue it generates. Amortization applies to the allocation of the cost of intangible assets, while arbitraging refers to the process of taking advantage of price differences in different markets, and securitization is the process of pooling assets and selling the cash flows to investors.

Allocation of the Historic Costs of Fixed Assets Against the Annual