GAAP requires the general description of the methods used in the computation of depreciation regarding major classes of assets to be disclosed in the notes of the financial statements.

Question

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GAAP (Generally Accepted Accounting Principles) mandates that financial statements include disclosures of significant accounting policies, which encompass the methods used for computing depreciation on major classes of assets. This ensures transparency and consistency in how asset depreciation is reported.

GAAP Requires the General Description of the Methods Used in the Computation