Which of the following does not apply to depreciation?

The reasoning behind the correct choice revolves around the nature of depreciation and how it is recognized in accounting. Depreciation is an accounting method that allocates the cost of a tangible asset over its useful life. It does this to match the expense with the revenue generated from the asset over time.

When an asset is acquired, it is recorded at its purchase price, but depreciation is not applied immediately in a financial sense. Instead, depreciation begins after the asset is ready for use. This means that while the asset is on the books from the moment of acquisition, the systematic expense recognition via depreciation does not start until the asset is operational and is being utilized to generate revenue.

In contrast, options that indicate depreciation being an expense recorded over time, that it reduces the book value of an asset, and that it reflects the asset's usage over its lifetime all accurately describe the concept of depreciation. These characteristics highlight how depreciation serves to appropriately allocate costs and reflect an asset's consumption throughout its economic life, reinforcing the idea that depreciation is a gradual process rather than an immediate one.