In a not-for-profit organization, depreciation on capital assets is recognized on equipment.

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In a not-for-profit organization, depreciation on capital assets such as equipment is recognized to reflect the wearing out, consumption, or other reduction in the useful life of the asset over time. This ensures that the cost of using the capital asset is allocated over the period for which it provides benefits, and not just in the year of acquisition.

In a Not-For-Profit Organization, Depreciation on Capital Assets Is Recognized