A) Depreciation expense reflects the decrease in market value each year.
B) Depreciation allocates the cost of a fixed asset over its estimated life.
C) Depreciation expense does not measure changes in market value.
D) Depreciation is an allocation not a valuation method.

A. Is not true.
Depreciation does not represent the loss of actual market value, but rather is an accounting tool which allows you to slowly apportion the initial purchase cost of an item over a set time frame. i.e.. Over the number of years that the item could reasonably be expected to function.

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