Concept explainers
To fill: The blank in the statement “The decrease in value from the original cost of a long-term asset over its useful life is known as _____.”
Answer to Problem 1CR
Solution:
The complete statement is “The decrease in value from the original cost of a long-term asset over its useful life is known as depreciation or depreciation expense.”
Explanation of Solution
The usefulness and productivity of an asset decreases over a certain time.
As a result, the cost of the assets except land decreases as time goes on and coincide with the revenue earned by the asset.
This decrease in value from the original value of an asset over its useful life is known as depreciation or depreciation expense.
Therefore, the complete statement is “the decrease in value from the original cost of a long-term asset over its useful life is known as depreciation or depreciation expense.”
Want to see more full solutions like this?
Chapter 17 Solutions
Contemporary Mathematics for Business and Consumers
- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage