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Recording depreciation on equipment affects both the statement of financial position and the statement of income.
Depreciation
The planned spreading out of the expense of a tangible asset over the duration of its usefulness.
Statement of Financial Position
A financial statement that shows the assets, liabilities, and equity of an entity at a specific point in time.
Statement of Income
A financial report that shows the company's revenue, expenses, and net profit or loss over a specific period.
- Absorb the range of depreciation strategies and their effects on fiscal statements.
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Learning Objectives
- Absorb the range of depreciation strategies and their effects on fiscal statements.
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