Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 11 - No. 7)
What is the effect of the depreciation of an asset on the financial statements?
Decreases net profit.
Decreases assets.
Increases liabilities.
Increases equity.
Explanation
Depreciation expense reduces net profit on the income statement, and accumulated depreciation reduces the asset's value on the balance sheet.
Comments (0)
