Q315
Purchase cost of assets over its useful life is classified as
A.
appreciation
B.
depreciation
AnswerC.
appreciated assets
D.
appreciated liabilities
Answer: Option B
Solution
Answer: Option B
Solution:
Purchase cost of assets over its useful life is classified as depreciation. Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes.