3 Questions
How does depreciation impact the financial statements of a company?
It decreases the total assets
What is depreciation?
The decrease in the value of an asset over time due to wear and tear, obsolescence, or other similar factors
Why is depreciation considered a non-cash expense?
Because it doesn't impact the cash flows of a company
This quiz explores the concept of depreciation and its effects on a company's financial statements. It delves into the reasons why depreciation is classified as a non-cash expense.
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