3 Questions
What is depreciation in accounting?
The allocation of the cost of an asset over its useful life
Which method of depreciation assumes an equal reduction in the asset's value each year of its useful life?
Straight-line depreciation
How does depreciation affect the financial statements?
It reduces the value of assets on the balance sheet and decreases net income on the income statement
Test your knowledge of depreciation in accounting with this quiz. Learn about the concept of depreciation, the straight-line method, and how depreciation impacts financial statements.
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