Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 38 - No. 11)
What happens to an asset that has been used in the business?
It will still be an asset account.
It's converted to an expense.
It is debited to retained earnings.
It does not affect the accounting equation.
Explanation
When an asset is used in the business for its intended purpose, it is converted to an expense.
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