What are the most common transaction types that occur during the life of an asset?
A)Production
B)Allocation
C)Acquisition
D)Depreciation
E)Retirement

Question

Quizplus · Accepted Answer

C) Acquisition: This refers to the initial purchase of the asset, whether it is bought outright or financed through a lease or loan.

D) Depreciation: Over time, the value of the asset will decrease due to wear and tear, obsolescence, and other factors. Depreciation is the process of accounting for this decrease in value over time.

E) Retirement: Eventually, the asset may become obsolete, no longer useful or cost-effective to maintain, or simply be disposed of for other reasons. Retirement is the process of removing the asset from the books and disposing of it properly.

While production and allocation (the process of assigning costs to specific units or departments) are important functions in accounting, they are not necessarily transaction types that occur during the life of an asset.

What Are the Most Common Transaction Types That Occur During