The purpose of depreciation accounting is to: Select one: A. Accumulate funds to replace a plant asset at the end of its useful life B. Have a plant asset's book value equal its initial cost by the end of its useful life C. Reflect changes in the current value of a plant asset over its useful life D. Allocate a plant asset's cost, less its salvage value, to expense over the asset's useful life

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Davon Riggs

Business

1 November, 07:59

The purpose of depreciation accounting is to: Select one: A. Accumulate funds to replace a plant asset at the end of its useful life B. Have a plant asset's book value equal its initial cost by the end of its useful life C. Reflect changes in the current value of a plant asset over its useful life D. Allocate a plant asset's cost, less its salvage value, to expense over the asset's useful life

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Gordon Flowers · Answer 1

Option D

The purpose of depreciation accounting is to: Allocate a plant asset's cost, less its salvage value, to expense over the asset's useful life

Explanation:

Depreciation accounting is an effort to designate, regularly and logically, the distinction within an asset's primary cost by the conclusion of its valuable life and salvage value above the expected beneficial life of the asset. In accounting, depreciation is the assigning or designating of the cost of a plant asset to expense in the accounting periods that are inside the asset's valuable life.

There are various methods to lessen assets for your records or financial accounts, but the IRS simply provides one method of practicing depreciation on your tax return.