Accounting for IGCSE & O level - Accounting Procedures (Section 15 - No. 1)
What does depreciation expense represent?
The decline in market value of an asset.
The systematic allocation of the cost of an asset over its useful life.
The cash outflow associated with an asset.
The actual loss in value of an asset
Explanation
Depreciation is not a direct measurement of market value but rather a way to account for the asset over its lifetime.
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