Answer:
Option B
Explanation:
Depreciation refers to an accounting tradition that enables a firm to compose off the worth of an asset throughout an amount of time, generally the beneficial life of the investment.
Assets like equipment and appliances are costly. Instead of recognizing the asset's full cost in the first year one, depreciating the asset helps businesses to distribute the burden and generate income from it.
Thus, depreciation relates to decrease in value of an asset so that expenses can be recorded efficiently and revenue could be computed as per the periods. Therefore, the method of depreciation should be chosen as per its revenue contribution to the entity using it.
