QUESTION 45The purpose of recording depreciation expense is to provide cash necessary to replace plant assets when they are used up. record the balance sheet amount of plant assets at replacement value. match expenses with revenues using a reasonable systematic method. gain a better understanding of estimating the extraction of natural resources.

Depreciation expense is the non-cash outlay which is recorded on the fixed assets to report their…

Answered: The purpose of recording depreciation…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.1MBA

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QUESTION 45

The purpose of recording depreciation expense is to

		provide cash necessary to replace plant assets when they are used up.
		record the balance sheet amount of plant assets at replacement value.
		match expenses with revenues using a reasonable systematic method.
		gain a better understanding of estimating the extraction of natural resources.

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