The Statement That Best Describes the Nature of Accounting Depreciation

question 17

Multiple Choice

The statement that best describes the nature of accounting depreciation is:

• A)A charge representing the change in the asset's market value
• B)A charge representing the decline in the physical efficiency of the asset
• C)The amount that can be claimed as a tax deduction
• D)An allocation of the cost of the asset over its estimated useful life

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Definitions:

Federal Law

The body of law created by the federal government of a country, applicable nationwide.

Vacation

A vacation is a period of time spent away from home or business in travel or recreation.

Family and Medical Leave Act

U.S. federal law that provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for qualified medical and family reasons.

Eligible Employee

A worker who meets certain criteria to qualify for benefits or rights under employment laws or company policies.