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Which statement best explains Depreciation?

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Question ID #25874 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Accounting Principles Sectional Test 2026 Medium

Which statement best explains Depreciation?

Correct Answer: D. Systematic allocation of the depreciable amount of an asset over its useful life
Depreciation: Systematic allocation of the depreciable amount of an asset over its useful life

Question: Which statement best explains Depreciation?

A. Recognition of transactions primarily when cash is received or paid

B. Expenditure whose benefit is generally consumed within the current accounting period

C. Current assets minus current liabilities

D. Systematic allocation of the depreciable amount of an asset over its useful life

Correct Answer: D. Systematic allocation of the depreciable amount of an asset over its useful lifeDepreciation: Systematic allocation of the depreciable amount of an asset over its useful life

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Which statement best explains Depreciation? - MCQ Explanation

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Correct answer: D. Systematic allocation of the depreciable amount of an asset over its useful life