What is the purpose of recording depreciation?

To avoid overstating the book value of the assets

To reduce the value of the assets on the balance sheet to their fair values

To pay for possible future repairs and eventual replacement of the assets

To allocate the cost of the assets to the accounting periods in which the assets are used to produce benefits

Answer rating: 100% (QA)

Purpose of Recording Depreciation Depreciation is an ascribing action by which a firm assigns ... View the full answer