GAAP Requires the General Description of the Methods Used in the Computation

question 101

True/False

GAAP requires the general description of the methods used in the computation of depreciation regarding major classes of assets to be disclosed in the notes of the financial statements.

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Definitions:

Store Supplies Expense

The cost associated with materials and supplies consumed during the operation of a retail store, recognized as an expense in the company's financial statements.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Accumulated Depreciation

The total depreciation of a fixed asset that has been charged to expense since the asset was acquired and put into use.

Office Supplies

Items used in offices for daily operations, including paper, pens, files, and other stationery.