It is not necessary to report both the cost and the accumulated depreciation of plant assets in the financial statements.

Question

Quizplus · Accepted Answer

Both the cost and accumulated depreciation of plant assets must be reported in the financial statements as per generally accepted accounting principles (GAAP). The cost provides information about the original investment, while accumulated depreciation shows the amount of the asset's value that has been used up over time. The difference between the two represents the asset's net book value.

It Is Not Necessary to Report Both the Cost and the Accumulated