Asked by

yordanka licea
on Nov 14, 2024

verifed

Verified

Recognition of depreciation permits the accumulation of cash for the replacement of the asset.

Accumulation of Cash

Accumulation of cash refers to the process of systematically saving and collecting cash within a company for future use, often for investment, operational needs, or as a reserve.

Recognition of Depreciation

The accounting process of systematically allocating the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

  • Gain an understanding of the theories and procedural aspects of depreciating assets.
verifed

Verified Answer

CP
Chloé PadronNov 14, 2024
Final Answer:
Get Full Answer