Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. db post:why do we need depreciation? what effects

DB POST:Why do we need depreciation? What effects do differentdepreciation methods have on expenses...DB...

90.2K

Verified Solution

Question

Accounting

DB POST:

Why do we need depreciation? What effects do differentdepreciation methods have on expenses and assets?

Answer & Explanation Solved by verified expert
4.2 Ratings (892 Votes)
As per the matching principle all revenues and expenditures of a particular period should come in that periods income statement to give true and fair view of the financial statement However with regards to Fixed Assets like machinery they have the useful life of more than one year Therefore they are not recognized as an expense Hence the a need of recognizing the expense part for    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

In: AccountingDB POST:Why do we need depreciation? What effects do differentdepreciation methods have on expenses...DB POST:Why do we need depreciation? What effects do differentdepreciation methods have on expenses and assets?

Other questions asked by students

Chemistry
1.2K views

How would the molar solubility of barium sulfate be impacted if it were to be dissolved in...

Physics
1.2K views

An electron moves with velocity of 6.0x106 m/s perpendicular to a magnetic field facing out of...

Finance
1.2K views

(a) Starting from today, every month you save $200 into a bank account which earns interest...

Geometry
1.2K views

What is sin 28 28 17 15 62 90 00

Basic Math
1.2K views

The domain and range of some relations are given Each relation consists of five points...

Algebra
1.2K views

3 Solve by the method of your choice 3r r 2

Accounting
1.2K views

Delmar Inc. uses a standard cost system. Labor standards are 2.1 hours per widget at...

Accounting
1.2K views

The following is the adjusted trial balance for Stockton Company. a....

Accounting
1.2K views

I will not email seperately and pay for the full answer. only accepting answers on...

Accounting
1.2K views

In 1992, the Billy Bob Corporation had $4,000,000 in sales, $800,000 in dividends from a...

Accounting
1.2K views

Pharoah Ltd. purchased a new machine on April 4, 2017, at a cost of $180,000....

Accounting
1.2K views

172 50 90 230 Adjusted trial balance as at 30 June 20XX Account no. Account...