Which of the following most accurately reflects the concept of depreciation as used in accounting?
a. the process of charging the decline in value of an economic resource to income in the period in which the benefit occured
b. the process of allocating the cost of tangible assets to exepnse in a systematic and rational manner to those periods expected to benefit from teh use of the asset
c. a method of allocating asset cost to an expense account in a manner which closely matches the physical deterioration of the tangible asset involved
d. an accounting concept that allocates the portion of an asset used up during the year to the contra asset account for the purpose of properly recording the fair market value of tangible assets
Ans: b. the process of allocating the cost of tangible assets to exepnse in a systematic and rational manner to those periods expected to benefit from teh use of the asset
You might also like to view...
The needs for shelter and food can be categorized as ______ needs, while the need for designer fashions can be classified as a ______ need.
safety; psychological physiological; personal psychological; self-actualization personal; social
When a bond's rating improves from A to AA
A) the coupon rate will fall and the price will rise. B) both the coupon rate and the price will rise. C) both the coupon rate will stay the same and the price will fall. D) the coupon rate will stay the same, but the price will rise.