Depreciation Is

question 22

Multiple Choice

Depreciation is:

• A)a process of valuation.
• B)the setting aside of cash to replace assets as they wear out.
• C)the allocation of a plant asset's cost to expense over its life.
• D)not calculated for assets that are appreciating in value.

---

Definitions:

Original Useful Life

Original Useful Life refers to the expected duration, typically measured in years, during which an asset is considered usable for its intended purpose.

Remaining Book Value

The net amount of an asset or liability recorded on the balance sheet, reflecting original cost adjusted for depreciation, amortization, and impairments.

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Useful Life

The estimated time period that an asset is expected to be used before it is fully depreciated or deemed no longer useful.