The book Accounts; Their Construction And Interpretation was written by author Cole, William Morse, 1866- Here you can read free online of Accounts; Their Construction And Interpretation book, rate and share your impressions in comments. If you don't know what to write, just answer the question: Why is Accounts; Their Construction And Interpretation a good or bad book?
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Depreciation of merchandise is in a somewhat different category from depreciation of fixed property. Since merchandise is sup- posedly constantly flowing, a progressive depreciation may or may not be necessary. When a stock of goods has once attained an age I08 ACCOUNTS normal for its line of business and has been depreciated to a value recognizing that age, further depreciation is not necessary if the stock is not depleted of newer goods or held stagnant enough to increase its average age. The... replenishment of stock is then exact- ly equivalent to maintaining its value, and depreciation no more occurs with it than with any large property that is kept up by re- placing old parts and repairing new ones fast enough to keep the average constant. If, on the other hand, some parts of the stock get older and older (assmning the usual type of merchandise with which age means shrinkage of value) and there is no offset else- where, progressive depreciation must be applied. One caution has been foimd often necessary in this connection.
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