Answered: Depreciation is:a) A cash expenseb)…

Depreciation is:a) A cash expenseb) The allocation of an asset's cost over its useful lifec) Reported as a liabilityd) Used to adjust accounts receivable

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7Q: Describe the relationship between expense recognition and long-term assets.

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Question

Depreciation is:
a) A cash expense
b) The allocation of an asset's cost over its useful life
c) Reported as a liability
d) Used to adjust accounts receivable

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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