What are the reason for charging depreciation on assets?
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By Charging depreciation expense an entity is following two main priciples of accounting. 1) Matching Principle: matching income against expenses of the related period. 2) Prudence: recording all the expenses (not understating expenses.
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HEY MATE HERE YOUR ANSWER
By Charging depreciation expense an entity is following two main priciples of accounting. 1) Matching Principle: matching income against expenses of the related period. 2) Prudence: recording all the expenses (not understating expenses.
Please Mark brain list :-)
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