There may be more than one correct answer.

10) An office building can be used for many years before it becomes run down and is sold. The cost of the building is spread out over its predicted life, with a portion of the cost being expensed each accounting year. This is an example of depreciation which

A. refers to spreading an intangible asset's cost over that asset's useful life.

B. refers to distributing a tangible asset's cost over that asset's life.

C. none of the above.