Homework Answers
b. The process of allocating the cost of tangible assets to
expense in a systematic and
rational manner to those periods expected to benefit from the use
of the asset.
Although depreciation provides for the gradual decline in value i.e. wear and tear in assets due to its use, the purpose of depreciation is to systematically and rationally provide for such costs of wear and tear over the useful life of asset.
Hence, the correct option is b.
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