true or false 1. Capitalizing the cost of an asset implies that the asset has future service potential. 2. The process of recognizing, or spreading, cost over multiple periods is termed depreciation. False 3. As an asset is depreciated, the cost is said to expire. 4. Systematic costallocation methods attempt to measure changes in expectations or discount rates. 5. The concept of depreciation was devised in an effort to satisfy the need to allocate the cost of property, plant, and equipment over the periods that receive benefit from use of longterm assets. 6. Depreciation has no impact on recorded income. False 7. Economists believe that depreciation charges and the resulting accumulated depreciation provide the source of funds for future replacement of assets. 8. The depreciation base is the portion of the cost of the asset that should be charged to expense over its expected useful life. 9. Salvage value plays a critical role in calculating depreciation. 10. Useful service life and physical life are almost always the same.