Question
K Enterprises follows the written down value method of
depreciating machinery year after year due to which of the following:Solution
Consistency is one of the fundamental accounting principles, which requires a company to apply the same accounting methods and procedures from one accounting period to another, to ensure that the financial statements are comparable over time. By consistently using the written down value method of depreciation, Kanika Enterprises is ensuring that its financial statements remain comparable and that the value of its machinery is consistently depreciated in a predictable manner.
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