question 1 (12.5 points)\nwhat is depreciation?\n a) the allocation of the cost of an asset over its useful…

question 1 (12.5 points)\nwhat is depreciation?\n a) the allocation of the cost of an asset over its useful life\n b) the immediate expense of an asset in the year it is purchased\n c) the process of selling an asset at a higher price than its purchase price\n d) the increase in value of an asset over time\nquestion 2 (12.5 points)

question 1 (12.5 points)\nwhat is depreciation?\n a) the allocation of the cost of an asset over its useful life\n b) the immediate expense of an asset in the year it is purchased\n c) the process of selling an asset at a higher price than its purchase price\n d) the increase in value of an asset over time\nquestion 2 (12.5 points)

Answer

Brief Explanations:

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life. It represents the wear - and - tear, obsolescence, etc. of the asset. Option a correctly defines it as the allocation of the cost of an asset over its useful life. Option b is incorrect as it describes an immediate expense which is not depreciation. Option c is about profit - making from selling an asset, not depreciation. Option d describes appreciation, not depreciation.

Answer:

A. The allocation of the cost of an asset over its useful life