Question

Depreciation Expense is: A. The actual cost of purchasing a fixed asset B. The decrease in the value of an asset during the period C. The process of allocating the cost of a fixed asset to expenses over the asset’s estimated useful life D. A contra asset account

Answer 1

Answer:  C)The process of allocating the cost of a fixed asset to expenses over the asset’s estimated useful life

Explanation: Depreciation expense that depicts the depreciation in the statement of income. Depreciation is defined as the estimated and periodic change of the fixed assets to expenses . This is usually carried out in business field acting as operating expense.

Other options are incorrect because decrease does not necessarily occur in asset and it is described fixed cost not fixed asset . It is not an contra assets account.Thus, the correct option is option(C).