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Depreciation allowance encourages companies to invest in new equipment. For accountants, it gives a proper match of the cost of using the asset to the current revenues by periodic allocation of the original cost to expenses over the life of the asset.
Reference : http://www.investorglossary.com/depreciation.htm
http://www.wikipedia.com/accoutingprinciple.htm
Money is used in final settlement of a debt and as a ready store of value. Its different functions are associated with different empirical measures of the money supply. Since most modern economic systems are regulated by governments through monetary policy, the supply of money is broken down into types of money based on how much of an effect monetary policy can have on each...
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