Which of the following statements accurately describes depreciation?

Which of the following statements accurately describes depreciation?


I. Depreciation is used to allocate the cost of the asset over periods benefited.

II. Depreciation is used to track the fair value of the asset.

III. The book value of an asset is its original cost less accumulated depreciation.



A) I and III

B) I and II

C) II and III

D) All of these statements are correct.


Answer: A


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