Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 16 - No. 45)
What impact does recording depreciation expense have on a company's financial statements?
Decreases net income.
Decreases total assets.
Increases total assets.
Increases net income.
Explanation
Depreciation expense decreases net income (through the income statement), and decreases total assets (by reducing the carrying value of the depreciated asset).
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