The Process of Transferring the Cost of an Asset to an Expense

question 121

Multiple Choice

The process of transferring the cost of an asset to an expense account is called all of the following except

• A) depletion
• B) allocation
• C) amortization
• D) depreciation

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Definitions:

Consolidated Equipment

Assets that are combined from different departments or subsidiaries within a company for reporting purposes, often in the context of financial statements.

Fair Values

A financial term indicating the estimated market value of an asset or liability, based on current prices in an active market.

Credit Balance

A situation in an account where the total credits exceed the total debits, indicating an amount owed to the account holder or a surplus in a liability account.