The allocation of a plant asset's cost over its useful life is called:
A)residual value.
B)book value.
C)accrued revenue.
D)depreciation.

Question

Quizplus · Accepted Answer

The allocation of a plant asset's cost over its useful life is known as depreciation. Depreciation is an accounting concept that recognizes the decrease in the value of an asset over time, reflecting its usage, wear and tear, and obsolescence. The purpose of depreciation is to match the cost of the asset with the revenue it generates during its useful life, and to provide a systematic way of recording the asset's value on the balance sheet and the income statement.

The Allocation of a Plant Asset's Cost Over Its Useful