1. Please explain the concept of depreciation in your own words and discuss why it is important. Wouldn't it make more sense for companies to fully expense fixed assets in the year of purchase rather than depreciating them over time?

1. Please explain the concept of depreciation in your own words and discuss why it is important. Wouldn't it make more sense for companies to fully expense fixed assets in the year of purchase rather than depreciating them over time?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4MC: Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers...

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2. 1. What is the definition of a fixed asset and which expenditures can be added to the capitalized cost of a fixed asset?

3. 2. Please define the term "Net book value."

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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