Generally accepted accounting principles (GAAP)require that long-term assets be expensed over their estimated useful lives

Question

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Long-term assets, such as property, plant, and equipment, should be expensed over their estimated useful lives according to GAAP. This is known as the depreciation expense. By expensing the cost of the asset over its useful life, the expense is spread out and matched with the revenue it generates.

Generally Accepted Accounting Principles (GAAP)require That Long-Term Assets Be Expensed