Accountancy, asked by prettymuch7758, 1 year ago

What Is The Effect Of Depreciation Of Assets On Profits Received By Owners?

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Answered by sreshtaa20059
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A depreciation expense has a direct effect on the profit that appears on a company's income statement. The larger the depreciation expense in a given year, the lower the company's reported net income – its profit. However, because depreciation is a non-cash expense, the expense doesn't change the company's cash flow.

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