What Is the Major Purpose of Depreciation

question 62

Multiple Choice

What is the major purpose of depreciation?

• A)To provide for the replacement of the asset
• B)To spread the cost of the asset over its useful life, so that the cost of using it up is matched against income earned
• C)To adjust the asset to its expected market value
• D)None of the above

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Definitions:

Interaction

The reciprocal action or influence between entities, objects, or individuals, highlighting how they affect each other.

Information-Processing Theorists

Scholars who study how human beings process information, including the ways in which they perceive, analyze, manipulate, store, and retrieve information.

Coherent Structures

Organized and stable patterns of relationships or elements that form a unified whole, commonly used in physics and mathematics.

Adaptive Functions

The purposes or roles that behaviors or physiological processes serve in helping an organism survive and reproduce in its environment.