Asked by Kelin Martinez on May 06, 2024
Verified
The systematic allocation of land's cost to expense is called depreciation.
Systematic Allocation
The process of distributing an expense or income in a methodical way over a certain period or among various accounts.
Land's Cost
The total amount of money spent to purchase land, including acquisition costs, legal fees, and any other related expenses.
Depreciation
The allocation of the cost of a tangible asset over its useful life, accounting for wear and tear, deterioration, or obsolescence.
- Apprehend the idea and the method of recording depreciation in accounting.
Verified Answer
DA
Derek AndrewMay 11, 2024
Final Answer :
False
Explanation :
The systematic allocation of land's cost to expense is not called depreciation; it is referred to as amortization or depletion, depending on the context. Land itself is not depreciated because it does not have a determinable useful life.
Learning Objectives
- Apprehend the idea and the method of recording depreciation in accounting.