Depreciation helps keep the accounting equation in balance by matching the expense of a liability with the revenue that liability is expected to generate
Indicate whether the statement is true or false
FALSE
Explanation: Accountants use depreciation to spread out the cost of the equipment over its useful life. Depreciation helps keep the accounting equation in balance by matching the expense of the asset with the revenue that asset is expected to generate.
You might also like to view...
Which of the following is true of RFID or "smart tag" technology?
A) "Smart tag" technology eliminates the need for intermediaries and facilitates a direct marketing system. B) "Smart tag" technology can de-automate the entire supply chain. C) The use of "smart tag" technology makes it difficult to know where a product is located physically within the supply chain. D) Retailers and suppliers using "smart technology" have higher risks of shoplifting and robbery. E) "Smart shelves" can tell when it is time to reorder and can place orders automatically.
What is meant by concentration risk?
What will be an ideal response?