The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is_________?

A. Depreciation
B. Physical deterioration of the asset
C. Decrease in market value of the asset
D. Valuation of an asset at a point of time

Depreciation is the accounting process of gradually converting the cost of a fixed asset into expenses over its useful life.

• Depreciation is an accounting method that spreads out the cost of a tangible asset over its useful life.
• It’s used to match costs to revenues.
• Depreciation occurs because assets decline in value over time.
• Depreciation expense is the portion of the cost of an asset that has been depreciated for a single period.

Depreciation is part of the accounting process for fixed assets, which also includes:

• Entering the asset’s purchase cost
• Periodically depreciating the cost over the asset’s useful life
• Eventually disposing of the asset and removing it from the books

Depreciation, depletion, and amortization (DD&A) is an accounting technique that companies use to gradually expense various different resources of economic value over time.