Which of the Following Statements Best Describes the Process of Accounting

question 37

Multiple Choice

Which of the following statements best describes the process of accounting for depreciation?

• A)A process that attempts to recognize loss in economic value over a period of time.
• B)A process for setting aside cash so funds will be available to replace the asset.
• C)A process for recognizing the cost of an asset that should be matched against revenue earned as a result of using the asset.
• D)A process for recognizing all of the cost associated with using an asset in a revenue generating activity.

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