Ex. 11-75 Componentization and depreciation of PP&E assets
You are the accountant for a manufacturing company. You have just been advised of the acquisition of a new machine. You have received a memo which only gives you the following information:
To be able to properly account for this asset, list and briefly describe what additional information you require.
Provide clear, concise answers for the following:
2.Define depreciation accounting.
3.Does depreciation accounting provide cash? If not, what does provide cash? In relation to cash, what does depreciation accounting do?