What is the definition of depreciation?A) Depreciation is a special type of prepaid item involving fixed assets and it is the allocation of an asset's cost over its useful life.B) Depreciation is a special type of accrued liability item involving fixed assets and it is the allocation of an asset's cost over its useful life.C) Depreciation is a special type of prepaid item involving revenues and it is the allocation of an asset's cost compared to revenue generated over its useful life.D) Depreciation is a special type of prepaid item involving a current prepaid asset and it is the allocation of the prepaid's cost over the asset's life.

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MacKenzie Simonar · Accepted Answer

Final Answer : A, Explanation :  Depreciation is the allocation of an asset's cost over its useful life, and it is a special type of prepaid item involving fixed assets. Accrued liabilities and revenues are not related to depreciation. Depreciation does not involve a current prepaid asset, but rather the allocation of the cost of an existing asset over its life.

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