Accounting for IGCSE & O level - Accounting Procedures (Section 27 - No. 46)
How does depreciation affect the balance sheet?
Increases assets and liabilities.
Decreases assets and decreases owner's equity.
Increases assets and increases owner's equity.
Decreases liabilities and owner's equity.
Explanation
Depreciation reduces the book value of assets and decreases owner's equity through accumulated depreciation.
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