The portion of a non-current asset, such as machinery, which is transferred to an expense account during an accounting period, is known as:
A) carrying amount.
B) unused expense.
C) depreciation.
D) residual value.

Question

Quizplus · Accepted Answer

The process of transferring a portion of a non-current asset's cost to an expense account over the asset's useful life is known as depreciation. Depreciation is recognized as an expense to match the cost of an asset with the revenue it generates over the period it is used. The carrying amount is the value of an asset that is recorded on the balance sheet after subtracting accumulated depreciation. Unused expense is not a recognized accounting term, and residual value is the estimated amount that a company expects to recover from an asset at the end of its useful life.

The Portion of a Non-Current Asset, Such as Machinery, Which