Plant assets are depreciated because

Question

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Depreciation of plant assets is necessary to match the cost of the asset with the revenue it helps generate during its useful life. This is because of the accrual basis of accounting, which requires that expenses be recognized in the same period as the related revenue to which they apply. Therefore, the depreciation expense is spread over the useful life of the plant asset, which allows for a systematic allocation of the cost over time and matches it with the revenue the asset generates.

Plant Assets Are Depreciated Because