In accounting, depreciation refers to the:
A)method of spreading the cost of an asset over its useful life.
B)method of declining the market value of an asset to its book value.
C)method of estimation of an asset's current market value.
D)process of sale of a used asset.

Question

Quizplus · Accepted Answer

Depreciation is the method of spreading the cost of an asset over its useful life. This is done to match the expense of the asset with the revenue it generates, rather than recording the entire cost of the asset as an expense in a single period.

In Accounting, Depreciation Refers to The