Accounting for IGCSE & O level - Accounting Procedures (Section 28 - No. 1)
What is the relationship between 'depreciation' and 'useful life'?
Depreciation is the process of allocating an asset's cost over its useful life.
Useful life is the annual depreciation expense.
Depreciation expense is directly proportional to the asset's useful life.
Useful life is the original cost minus depreciation expense.
Explanation
Depreciation spreads the asset's cost across its estimated useful life.
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