Depreciation Expense for a Period Is the Portion of a Plant

question 206

True/False

Depreciation expense for a period is the portion of a plant asset's cost that is allocated to that period.

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Definitions:

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use.

Cash Price

The price of an item for immediate payment, as opposed to a higher price when paying on credit.

Productivity

A measure of efficiency, typically defined as the output of goods or services produced per unit of input, such as labor or capital.

Salvage Value

The forecasted remaining worth of an asset after its period of functionality has ended.