Business Studies, asked by reggiemalinda, 5 months ago

why is depreciation entered in the profit and loss account

Answers

Answered by huvalimudoi
2

Answer:

when depreciation expenses appear on an income statement, rather then reducing cash on the balanced sheet ,they are added to the accumulated depreciation account . Doing so lowers ,the carrying value of the relevant fixed assests

Answered by Anonymous
30

Answer:

because to gradually reduce the recorded cost of fixed asset to recognise a portion of the asset expense the same time that company record revenue generated by the asset

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