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They assign revenues to the period in which they are earned and expenses to the period in which related goods or services are used. Every adjusting entry involves a change in either a revenue or expense and an asset or liability.
Depreciation: The systematic allocation of the cost of a depreciable asset...
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Every adjusting entry involves a change in either a revenue or expense and an asset or liability.
Depreciation: The systematic allocation of the cost of a depreciable asset. Straight line method:
Depreciable assets are physical objects that retin their size and shape but lose their economic usefulness over time (e...
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