______________ is the amount of the acquisition cost to be allocated as depreciation over the total useful life of an asset.

historical cost

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Book value

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Depreciable value

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Residual value

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Solution

The correct option is C Depreciable value
Depreciable value is allocation of the cost of a tangible asset over its useful life. Principle factor in measurement of depreciation are total cost of asset, useful life of the asset, residual value of the asset.

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Similar questions

Q. __________ has defined depreciation as "a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes. Depreciation is allocated so as to charge a fair proportion of depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortization of assets whose useful life is predetermined."

___is a method of depreciation, in which the cost of the asset is spread uniformly over the life years by writing off a fixed amount every year, where as in ___ method of depreciation, a fixed rate of depreciation is charged on the book value of the asset over its useful life.

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Q. Depreciation Accounting has been defined by the ________ as " a system of accounting which aims to distribute the cost or other basic value of tangible capital assets less salvage (if any) over the estimated useful life of the unit (which may be a group of assets) in a systematic and rational manner. It is a process of allocation and not of valuation".

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______________ is the amount of the acquisition cost to be allocated as depreciation over the total useful life of an asset.

The correct option is C Depreciable valueDepreciable value is allocation of the cost of a tangible asset over its useful life. Principle factor in measurement of depreciation are total cost of asset, useful life of the asset, residual value of the asset.

The correct option is C Depreciable value
Depreciable value is allocation of the cost of a tangible asset over its useful life. Principle factor in measurement of depreciation are total cost of asset, useful life of the asset, residual value of the asset.