Question

As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called

Answer 1

Answer:

Depreciation

Explanation:

Depreciation is the systematic allocation of estimated cost to an asset. Methods include straight line, sum of the year digits, double declining etc. The entries for recognizing this cost are;

Debit depreciation expense

Credit Accumulated depreciation

Hence to account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called depreciation.