Depreciation is the accounting term used to refer to
A)the periodic write-off of the acquisition cost of a tangible long-lived asset with a finite service life.
B)the periodic write-off of the current fair market value of a tangible long-lived asset with a finite service life.
C)the periodic write-off of the acquisition cost of an intangible long-lived asset with a finite service life.
D)the periodic write-off of the current fair market value of a intangible long-lived asset with a finite service life.
E)the periodic write-off of intangible assets.

Question

Quizplus · Accepted Answer

Depreciation refers to the periodic write-off of the acquisition cost of a tangible long-lived asset with a finite service life. It is an accounting process that helps to allocate the cost of the asset over its useful life. As the asset is used or becomes outdated, its value decreases over time. Depreciation allows businesses to account for the wear and tear or obsolescence of long-term assets and accurately match the expenses with the revenue generated from using those assets.

Depreciation Is the Accounting Term Used to Refer to