In the 14th century, plague ravaged Europe and Asia and was called the Black Death. Plague does not respond to penicillin, but other antibiotics are effective. Sanitary measures against fleas and rodents, quarantine and extreme caution in handling infectious materials help to suppress epidemics.
1. Expense recognition. Expenses are decreases in assets (e.g., rent expenses) or increases in liabilities (e.g., accrued utility expenses) that result from operating activities undertaken to generate revenue. Expenses are recognized in accordance with the matching principle. This principle mandates that the expense or cost of doing business is recorded in the same period as the revenue that has been generated as the result of incurring that expense or cost.
Step 3. Decide whether you will use an asset more in the early years of its life than in the later years. If this is the case, you may use the declining-balance method, which allocates a greater amount of depreciation expense to the early years of an assetâs life. The amount of depreciation expense decreases each year with this method. This method works well for assets that you expect to wear out quickly.