4 ms·
It's because the 'value' of something (eg a machine) is 'used up' over time until eg the machine eventually wears out and needs replacing. Depreciation reflect
by nprateem 3y ago
It's because the 'value' of something (eg a machine) is 'used up' over time until eg the machine eventually wears out and needs replacing.
Depreciation reflects that the asset's value is used up over time by allowing the owner to deduct part of its value each period to reflect the reduction in asset value in their financial statements.