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

By: USER1618
30 Agustus 2025 business 5 minutes
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Grade: Education Subject: business
Explain why we depreciate assets over their useful lives instead of just expensing them in the year they are acquired?
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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,

Answered on 30 Agustus 2025

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