1. Explain what is depreciation to someone who doesn't know anything about accounting. How does depreciation relate with the market value of an asset like a brand new automobile.
2. What is GAAP --What does it mean? Why is it important? Does GAAP make comparing different companies possible? Name two characteristics of GAAP.

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Depreciation Depreciation is a method used in accounting to allocate the cost of an asset over its useful life Essentially its the process of spreadin... View the full answer