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March 18, 2026The Accounting Review

The Influence of Depreciation Accounting on National Income.

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Authors

EHEldon S. HendriksenSmall Business Administration

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Implication

This analysis investigates depreciation's effect on national income and employment, suggesting improved accounting methods.

Key Points

  • This research aims to understand how depreciation accounting impacts national income and employment levels.
  • Analysis of accounting data related to depreciation rates and their economic implications.
  • Evaluation of current depreciation methods and their rigidity over time.
  • Examination of the relationship between depreciation rates and business activity or cycles.
  • Excessive depreciation rates during low activity periods can curtail consumer spending.
  • Inadequate depreciation rates during high activity periods may lead to over-optimistic investment habits.
  • Proposes alternative depreciation methods that adjust charges based on production levels or economic conditions.

Cite This Study

Eldon S. Hendriksen (1951) studied this question.

synapsesocial.com/papers/69ba44154e9516ffd37a5f99https://doi.org/10.2308/tar-7076479
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