There is no provision for depreciation in cash basis accounting because there is no actual cash involvedGroup of answer choicesTrueFalse

Question

There is no provision for depreciation in cash basis accounting because there is no actual cash involvedGroup of answer choicesTrueFalse
🧐 Not the exact question you are looking for?Go ask a question

Solution 1

False. In cash basis accounting, depreciation is not recorded because it only considers actual cash transactions. Depreciation is a non-cash expense that reflects the decrease in value of an asset over time. However, in accrual basis accounting, depreciation is recorded to match the expense with the Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

This problem has been solved

Similar Questions

There is no provision for depreciation in cash basis accounting because there is no actual cash involvedGroup of answer choicesTrueFalse

There is no provision for depreciation in cash basis accounting because there is no actual cash involved

Bad debts expense is not recognized in cash basis accountingGroup of answer choicesTrueFalse

Under the cash basis of accounting, no adjustments are made for prepaid, unearned, and accrued items.  True False

There is no need for a permit to work with animal pathogens because they cannot infect a human.Group of answer choicesTrueFalse

1/3