In Accounting,depreciation Refers to the ________

question 108

Multiple Choice

In accounting,depreciation refers to the ________.

• A)method of spreading the cost of a plant asset over its useful life
• B)method of declining the market value of an asset to its book value
• C)method of estimation of an asset's current market value
• D)process of sale of a used asset

---

Definitions:

Sales Returns

Goods returned by the customer to the seller for a refund or credit, often due to defects or dissatisfaction.

Gross Price

Gross price refers to the total price of a product or service before any deductions, such as discounts or taxes, are applied.

Net Price

The final price after all discounts, rebates, and taxes are applied, indicating the actual cost to the buyer.

Credit Sales

Transactions in which goods or services are provided to a customer with an agreement to pay at a later date.