Depreciation is based on the principle of:
A) allocation.
B) appropriation.
C) estimation.
D) approbation.

Question

Quizplus · Accepted Answer

Depreciation is based on the principle of allocation, which means spreading the cost of an asset over its useful life. This helps in matching the cost of the asset with the revenue it generates over time. Appropriation refers to the allocation of profits for specific purposes, estimation is the process of approximating the value of something, and approbation means approval or praise. None of these concepts relates to depreciation.

Depreciation Is Based on the Principle Of