Practicing Success
The purchase value of assets over its serviceable life is categorised as: |
Appreciation Depreciation Amortisation All of the above |
Depreciation |
Purchase cost of assets over its useful life is classified as depreciation. Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes. |