Which statement best describes the purpose of depreciation?

1. A Option A: Regular reduction of asset value to correspond to changes in market value as the asset ages
2. B Option B: A process of correlating the market value of an asset with its gradual decline in physical efficiency
3. C Option C: Allocation of the cost of an asset to the periods in which services are received from the asset
4. D Option D: Allocation of cost in a manner that will ensure that Plant and Equipment items are not carried on the Balance Sheet in excess of net realizable value

Answer checked 11 October 2026 · How we write and check questions