Adjustment and Depreciation

Outstanding expenses

Prepaid expenses

Expenses due

All of them

log tables

Annuity tables

sinking fund tables

Present value tables

Scrap value

Cost value

Depreciable value

Market value

An income

An asset

A loss

A liability

Machinery account

Depreciation account

Cash account

Repair account

Prudence concept

Accrual concept

Consistency concept

Matching concept

Asset side

Liability side

PandL account debit side

P andL account credit side

To calculate true profit

To show true financial position

To reduce tax

To provide funds for replacement

Overstatement of liabilities

Understatement of liabilities

Overstatement of expenses

Understatement of capital

beginning of each year

end of each year

beginning of each month

end of each month