Which Statement Best Describes the Nature of Accounting Depreciation

question 65

Multiple Choice

Which statement best describes the nature of accounting depreciation?

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