True and fair profit of any business can only be determined after charging depreciation because it is an expense which is important for taxation purposes. But many analysts think that depreciation is not that much necessary for the business because it reduces profit while some businesses think that it is necessary because of tax benefits. What do you think? Is depreciation an important treatment for every business? How will you compare the importance of depreciation for a manufacturing organization and for a Service organization?
True and fair profit of any business can only be determined after charging depreciation because it is an expense which is important for taxation purposes. But many analysts think that depreciation is not that much necessary for the business because it reduces profit while some businesses think that it is necessary because of tax benefits. What do you think? Is depreciation an important treatment for every business? How will you compare the importance of depreciation for a manufacturing organization and for a Service organization?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 9Q
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True and fair profit of any business can only be determined after charging
depreciation an important treatment for every business? How will you compare the importance of depreciation for a manufacturing organization and for a Service organization?
Which method is suitable for these organizations-
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