Question

What is the result of depreciation of fixed assets?

Answer 1

Heya...

See the answer...

Result of depreciation of fixed assets...

• It reduces the price of the fixed assets...

• It's working capicity may fall ...

• The producers feel the need to sale out that and purchase new one..

Thank you

Answer 2

☺✌Hiii mate here is your answer☺✌


Depreciate fixed assets. Depreciationis the portion of a fixed asset's cost recorded as an expense during the current accounting period. In simple terms, since a fixed asset has a useful life longer than one accounting period, depreciation represents the part of its value used up during the current period



Fixed assets must be revalued regularly to ensure that the right cost is included in the accounting books. Depreciation is very much necessary for fixed assets because the fixed asset would lose its residual value due to the wear and tear, depletion, passage of time, obsolescence or accidents over a time period.


hope it's helpful for you