In accountancy, depreciation refers to two aspects of the same concept: first, the actual decrease in value of fair value of assets, such as the decrease in value of factory equipment each year as it is used and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are used. To choose: Scope of the auditor on depreciation expense.

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Chapter 14, Problem 14.19MCQ

To determine

Concept Introduction:

In accountancy, depreciation refers to two aspects of the same concept: first, the actual decrease in value of fair value of assets, such as the decrease in value of factory equipment each year as it is used and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are used.

To choose:Scope of the auditor on depreciation expense.

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