Accounting for IGCSE & O level - Accounting Procedures (Section 7 - No. 25)
What is the role of depreciation in the financial statements?
It increases the asset's value.
It reduces the asset's value and reflects it on the income statement.
It has no impact on the income statement.
It only affects the balance sheet.
Explanation
Depreciation expense reduces the asset's value on the balance sheet and is reflected on the income statement.
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