Asked by
Neleh Feathers
on Nov 12, 2024
Verified
Depreciation Expense is reported on the balance sheet as an addition to the related asset.
Depreciation Expense
The allocation of the cost of a tangible fixed asset over its useful life, reflecting the decrease in value over time.
Balance Sheet
A statement presenting a snapshot of a company’s financial position, including assets, liabilities, and shareholders’ equity.
Related Asset
An asset that is connected or associated with another asset in a business, often through ownership or use in similar processes.
- Understand the principle of depreciation and its treatment in accounting.
- Identify the influence of adjusting entries on the preciseness of financial statements.
Verified Answer
SA
Learning Objectives
- Understand the principle of depreciation and its treatment in accounting.
- Identify the influence of adjusting entries on the preciseness of financial statements.