The principal difference between depreciation expense and most other types of expenses is that
A)depreciation expense can be avoided if the asset is worth at least what the company paid for it.
B)depreciation expense requires an annual outlay of cash.
C)the total amount of depreciation expense for the asset is reported on the balance sheet.
D)depreciation expense is subject to more precise measurement than most other expenses.

Question

Quizplus · Accepted Answer

Depreciation expense is a non-cash expense that allocates the cost of a tangible asset over its useful life. The accumulated depreciation, which is the total amount of depreciation expense, is reported on the balance sheet as a contra asset account.

The Principal Difference Between Depreciation Expense and Most Other Types