Accounting for IGCSE & O level - Accounting Procedures (Section 19 - No. 3)
Which of the following best describes the concept of 'depreciation' in accounting?
The decline in market value of an asset.
The allocation of an asset's cost over its useful life.
The expense of repairing an asset.
The profit earned from using an asset.
Explanation
Depreciation is a method for allocating the cost of an asset over time.
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