Depreciation is termed the reduction in the economical service potential of an asset as a result of wears or tears,obsolesces,effluxion of time,inadequacy,physical factors.

For what reason should independent companies care to record depreciation of fixed asset?

So now we know the importance of depreciation, the techniques used to compute them, inputs required to ascertain them and furthermore we saw cases of how to figure them. We should discover with respect to why the private companies should care to record deterioration.

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