Which of the following statements best describes the process of accounting for d

ID: 2422757 • Letter: W

Question

Which of the following statements best describes the process of accounting for depreciation?

A process that attempts to recognize loss in economic value over a period of time.

A process for setting aside cash so funds will be available to replace the asset.

A process for recognizing the cost of an asset that should be matched against revenue earned as a result of using the asset.

A process for recognizing all of the cost associated with using an asset in a revenue generating activity.

A process that attempts to recognize loss in economic value over a period of time.

A process for setting aside cash so funds will be available to replace the asset.

A process for recognizing the cost of an asset that should be matched against revenue earned as a result of using the asset.

A process for recognizing all of the cost associated with using an asset in a revenue generating activity.

From above option A is best suitable statement which describes process of accounting depriciation.

Depriciation is decrease in the value of an asset over a period of time due to wear and tear and use of asset.

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