In accounting,depreciation refers to the ________.
A)method of spreading the cost of a plant 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 allocating the cost of a plant asset over its useful life. This means that the cost is spread out over the asset's expected lifespan, rather than expensed all at once in the year of purchase. This is done to match the cost of the asset with the revenue it generates over time, and to accurately reflect its diminishing value as it ages and wears out.

In Accounting,depreciation Refers to the ________