Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 5 - No. 22)

What is the definition of 'depreciation'?
An increase in the value of an asset.
The allocation of the cost of a tangible asset over its useful life.
The process of selling an asset.
The purchase of a new asset.

Explanation

Depreciation is the systematic allocation of an asset's cost over its useful life.

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