Depreciation Is the Process of

question 88

Multiple Choice

Depreciation is the process of

• A) valuing an asset at its fair value.
• B) increasing the value of an asset over its useful life in a rational and systematic manner.
• C) allocating the cost of an asset to expense over its useful life in a rational and systematic manner.
• D) writing down an asset to its real value each accounting period.

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Definitions:

Leased Office Space

A property arrangement where a company rents a space for its business operations for a specified period of time.

FOB Shipping Point

A term used in shipping where the buyer is responsible for the goods once they leave the seller's premises.

Freight Charges

The fees incurred for transporting goods from one location to another.

Double-declining-balance

A method of accelerated depreciation where an asset’s book value is reduced at double the rate of its straight-line depreciation.