Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 8 - No. 22)
What is the effect of recording depreciation expense?
Increase in assets and increase in profit.
Decrease in assets and increase in profit.
Decrease in assets and decrease in profit.
Increase in assets and decrease in profit.
Explanation
Depreciation expense decreases assets (the book value of the asset) and decreases profit.
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