Accounting for IGCSE & O level - Accounting Procedures (Section 20 - No. 13)
Which of the following statements best describes the treatment of depreciation in accounting?
It is an expense that reduces a company's taxable income.
It is a method of valuing assets at their current market value.
It increases the company's cash flow.
It represents the actual physical wear and tear of an asset.
Explanation
Depreciation represents an expense that is tax deductible.
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