What is one example of an asset that may be depreciated over time?

One example of an asset that may be depreciated over time is a delivery truck. Depreciation is the accounting process of allocating the cost of tangible assets over their useful lives. A delivery truck is a long-term physical asset that has a definite lifespan and incurs wear and tear through its use, making it eligible for depreciation. This process reflects the decline in value of the truck as it ages and is utilized for business operations.

In contrast, inventory is considered a current asset that is sold in the regular course of business and is not depreciated but rather expensed when sold. Cash is a liquid asset that maintains its value and does not undergo depreciation. Office supplies are typically categorized as current assets that are used up quickly and are not depreciated in the same manner as long-term assets like a delivery truck. Thus, the delivery truck is the only option that aligns with the criteria for depreciation.