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Why there is different depreciation method in accounting. Explain it by giving example about each method. (

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

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Question

Why there is different depreciation method in accounting. Explain it by giving example about each method. (

2- There are different receivable write off methods. Explain the differences between each method by given and example.

3- Explain the importance of capitalization on depreciation expenses by given an example.

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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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