Question

Multiple Choice Is an outflow of cash from the use of a plant asset. Is applied to land. Measures the decline in market value of an asset. Measures physical deterioration of an asset. Is the process of allocating the cost of a plant asset to expense.

Answer 1

Answer:

Is the process of allocating to expense the cost of plant asset.

Explanation:

Depreciation is an expense indicating a decline in the value of the capital assets due to tear and wear, obsolescence, consumption, time span, etc. It's shown on the income statement debit side. It is a non-cash item which has no effect on the cash balance.

Moreover, it is to charged over the specified number of useful life so that proper amount of the depreciation should be recorded in the books of accounts