Depreciation is an expense that cuts out the value of the assets to take advantage of long-term asset building. Machinery equipment vehicles and assets, usually have a high value. Therefore, it has the advantage of these assets, and the estimated average cost for each depreciation period is considered to be at the expense of parties that don't have money because of the high price when buying, which has been used for many years and if it will save you the cost of the fee.High pay in the year of acquisition, there will be no costs in the next year had assets in particular, must therefore be the average cost based on the number of years that the asset account is accumulated depreciation an asset category, but as an asset, especially because of the reduced amount of money when it comes to record the acquisition as an asset, but when this asset values. At the end of the year, therefore, the need to save in order to reduce the amount of depreciation of assets decreased.
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