Question
Depreciation is charged on __________ as per theÂ
___________ of accounting.Solution
Non-Current assets like fixed assets are a result of Capital Expenditures. Depreciation is charged on long term fixed assets. Since the Non-Current Assets give the benefits for more than one year therefore, the cost cannot be taken as expense in the year of acquisition. As such, the matching concept is applied to charge depreciation over the useful life of the non-current asset.
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