The Theoretical Justification for Reporting Depreciation Expense Is

question 29

Multiple Choice

The theoretical justification for reporting depreciation expense is

• A) Depreciation expense represents a decrease in the value of the asset that has occurred during the accounting period.
• B) Depreciation expense represents the impairment of the asset that has occurred during the accounting period.
• C) Depreciation expense represents the unrealized loss that has been incurred by using the asset during the accounting period.
• D) Depreciation expense represents the allocation of the historical cost of the asset that has been applied to the accounting period