Depreciation allocates the cost of an asset over periods


Question:

Which of the following statements accurately describes depreciation?

A. Accumulated depreciation is a contra asset with a debit balance

B. Depreciation has nothing to do with the value of the value of the asset

C. Depreciation allocates the cost of an asset over periods benefited

D. Two of the above are correct

E. All of the above are correct

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Accounting Basics: Depreciation allocates the cost of an asset over periods
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