Business FinancesQuestion 302 of 1605
Depreciation of construction equipment is best described as:
a.A non-cash expense that allocates an asset's cost over its useful life
b.A cash payment made to the equipment lender each month
c.The increase in an asset's market value over time
d.A direct cost charged to a single job
Explanation
Depreciation is a non-cash accounting expense that spreads the cost of a long-lived asset across the years it is used. No cash leaves the business when depreciation is recorded.
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