QUESTION 17 Which of the following statements about depreciation is correct? Depreciation is a process of asset valuation, not cost allocation. Depreciation provides for the proper recording of expenses (efforts) with revenues (results). Depreciation does not apply to a building because its usefulness and revenue-producing ability generally remain intact over time. The book value of an asset should approximate its fair value. QUESTION 18 Very often, failure to record a liability means failure to record a(n) O extraordinary item. O gain. O revenue. O expense. QUESTION 19 When a company revises the amount of periodic depreciation taken because it believes that an asset will last longer than originally anticipated, the company should implement the change: in the current period in future periods a in prior periods in both the current and future periods