Which of the Following Best Describes Depreciation

Multiple Choice

Which of the following best describes depreciation?

A) Accounts for the market value of a physical asset.
B) It is part of the cost of a physical asset allocated as an expense to each time period in which the asset is used.
C) It shows the increase in value of a physical asset over the asset's useful life.
D) It shows the drop in value of an asset when the asset is first used by an entity.