In: Accounting
What type of asset depreciates
depreciaton is reduction in value of assets of company due to wear and tear, usage of assets, due ot pasing of time etc
depreciation is chargeable on tangible assets such as building, motor vehilce, furnitrue ,equipment , mahcinery etc
it is also charged on intangible assets like software, patents,copyrights etc
low cost items with short span of life are recorded as expenses
the purpose of deprecition is to match cost of assets to the revenues earned using the assets
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