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Accounting MCQs
Accounting Mcqs
Q
Which of the following statements best describes the purpose of depreciation?
AA. Regular reduction of asset value to correspond to changes in market value as the asset ages
BB. A process of correlating the market value of an asset with its gradual decline in physical efficiency
CC. Allocation of cost in a manner that will ensure that plant and equipment items are not carried on the balance sheet in excess of net realizable value
DD. Allocation of the cost of an asset to the periods in which services are received from the asset
Correct Answer:
D. D. Allocation of the cost of an asset to the periods in which services are received from the asset
