Question

Describe (in 100-200 words) the purpose of Depreciation (and Amortization and Depletion) and identify the Generally Accepted Accounting Principle(s) or Concepts that require this treatment for Long-Term Assets.

Answer 1

Answer:

Depreciation:

Depreciation intends to perceive in the pay proclamation the wear endured by an advantage by virtue of its utilization for the age of pay. The target of Depreciation isn't to recuperate the venture that the organization has made for its development or securing. The speculation is recouped through the productivity created by the utilization of said resource.

Long term assets:

Long term assets, otherwise called non-current assets, in spite of the fact that they are tough, are not constantly endless. Along these lines, bookkeeping powers devalue assets as their ordinary lives go, with the acknowledged general bookkeeping rule of time period, value, valuation at cost, collected, objectivity, since they do as such normally by the progression of time, because of its utilization, because of the mileage of the time this benefit is utilized, so as to mirror its most ideal esteem, or to amortize long term costs.