Depreciation:
A)Measures the decline in market value of an asset.
B)Measures physical deterioration of an asset.
C)Is the process of allocating to expense the cost of a plant asset.
D)Is an outflow of cash from the use of a plant asset.
E)Is applied to land.

Question

Quizplus · Accepted Answer

Depreciation is the process of allocating to expense the cost of a plant asset over its useful life. It is not a measure of market value or physical deterioration, nor is it an outflow of cash. Depreciation is also not applied to land because land does not have a limited useful life.