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

A. depreciation
B. matching
C. equipment allocation
D. accumulation

Depreciation is the process of writing of cost of fixed assets in order to provide for the expenses against the benefits arising thorough them, in this manner the cost of fixed assets is written off, during the life of the asset.

Cost of land is not written off as it is assumed it cannot degrade in the value, no matter how much benefits are taken from such land.

Depreciation is charged to reduce the carrying value of assets, and reduce the net income in income statement.

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 A. depreciation B. matching C. equipment allocation D. accumulation

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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

A. depreciation
B. matching
C. equipment allocation
D. accumulation