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3 votes
Explain why we depreciate assets over their useful lives instead of just expensing them in the year they are acquired?

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User Cotopaxi
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1 Answer

5 votes

We depreciate assets over their useful lives instead of just expending them in the year they were acquired because let's say, when we exhaust a 5 year asset in a year, the 1st year is understated because the whole expense of the asset has been fully utilized in just 1 year, while the remaining 4 years are overstated,

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User Latashia
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