Answer:
a) Depreciation expense is a special kind of prepaid expense.
Explanation:
Depreciation expense is treated the same way as amortized costs, which are actually a type of "prepaid" expenses. You depreciate an asset over time in a similar manner as you accrue prepaid expenses. Accumulated depreciation and carrying value are not meant to reflect an asset's market value since a can company can choose accelerated depreciation, bonus depreciation or even expensing the asset. Accumulated depreciation is a contra asset account that reduces the asset's carrying value.
