Helen is the head of the accounts department in a small business. She is calculating the various expenses that the business has incurred in the past quarter. On which asset would she need to calculate the expense of depreciation?
A.
cash
B.
inventory
C.
machinery
D.
accounts receivable

Depreciation is the technique accountants use to spread the cost of a tangible asset over its useful life. Depreciation apportions the cost of the tangible asset throughout its productive life as opposed to expensing it in the year of acquisition.

Tangible assets such as machinery are capital extensive. They are expected to generate revenue for the business for several periods. As per the matching principle, the cost of an asset should be accounted for in each of its useful life.

Helen is the head of the accounts department in a small business. She is calculating the various expenses that the business has incurred in the past quarter. On which asset would she need to calculate the expense of depreciation? A. cash B. inventory C. machinery D. accounts receivable

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Helen is the head of the accounts department in a small business. She is calculating the various expenses that the business has incurred in the past quarter. On which asset would she need to calculate the expense of depreciation?
A.
cash
B.
inventory
C.
machinery
D.
accounts receivable