What is the purpose of recording depreciation on plant assets? To allocate the cost of the asset to expense in the accounting periods in which the asset was used to generate revenue To adjust the asset amount on the balance sheet to fair value To provide funds for the replacement of the asset when it reaches the end of its useful life To properly apply the cost principle Pharoah Company is a cash-basis business. Pharoah signed a 6-month, 13% note payable of $ 12400 on October 1, 2022. By recording the interest expense related to the note only when it is paid on April 1, 2023, Pharoah will understate expenses by on its year- end financial statements on December 31, 2022 $403 $14012 $806 $0