Accounting for IGCSE & O level - Accounting Procedures (Section 26 - No. 45)
Which of the following is true about depreciation?
It is a method for allocating the cost of an asset
It is a cash outflow
It is recorded on the income statement
It is a contra-asset account
Explanation
Depreciation does not involve cash outflow, it is a way of matching costs to the revenue
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