Accounting Recognizes That Assets, Such as Machinery and Buildings, Lose

question 213

Multiple Choice

Accounting recognizes that assets, such as machinery and buildings, lose value over time. Accountants will record a portion of the cost of an asset as an expense each year through the use of

• A) asset valuation.
• B) asset audits.
• C) appreciation.
• D) depreciation.

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Definitions:

Expertise

Specialized knowledge or skill in a particular field, gained through experience, education, or training.

Spoils System

A practice where a political party, after winning an election, gives government jobs to its supporters as a reward and incentive.

Political Economy

An interdisciplinary field that examines the relationship between politics and economics, including how political institutions, the political environment, and the economic system influence each other.