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  • Question
  • Depreciation is a process of


  • Options
  • A. Allocation
  • B. Valuation
  • C. Both A & B
  • D. Appropriation

  • Correct Answer
  • Allocation 

    Explanation

    Depreciation is a process of cost allocation, not valuation. In accounting, the term depreciation refers to the allocation of cost of a tangible asset to expense to the periods in which the asset is expected to be used to obtain the economic benefit.

     

    In brief, Depreciation is fall in the value of assets due to wear and tear over a period of time, it is a loss.

  • Tags: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO

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