Question

important of depritiation???

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Answer 1

Answer:

Depreciation allows for companies to recover the cost of an asset when it was purchased. The process allows for companies to cover the total cost of an asset over it's lifespan instead of immediately recovering the purchase cost. This allows companies to replace future assets using the appropriate amount of revenue

Answer 2

Answer:

Depreciation needs to be provided because an asset is bound to undergo wear and tear over a period of time. ... Also, every asset becomes obsolete over a period of time, as new technology and innovation take over. The value of the asset will hence decrease over time and this must be accounted for.