**Question 10****Depreciation is:**a. the loss in market value of an asset.b. the allocation of a long-term asset's cost to an expense account over the asset's life.c. an increase in an asset’s value over time or usage.d. none of the above.---*Note: Click "Submit" to complete this assessment.*

Depreciation is: Oa. the loss in market value of an asset. Ob. the allocation of a long-term asset's cost to an expense account over the asset's life. Oc. an increase in an asset's value over time or usage. d. none of the above.

Depreciation is: Oa. the loss in market value of an asset. Ob. the allocation of a long-term asset's cost to an expense account over the asset's life. Oc. an increase in an asset's value over time or usage. d. none of the above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Depreciation is an accounting method for reducing the total amount of a tangible or physical asset over its expected or useful life. Depreciation is a metric that determines how much of an asset's value has been lost over time. Businesses can generate revenue from assets by depreciating them, which allows them to spend a portion of their cost each year they are in use. The wrong way to account for depreciation can have a big impact on a company's profits. For tax and accounting purposes, long-term assets can also be depreciated.

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