1.

How Does Depreciation Affect The Income Statement?

Answer»

Accumulated DEPRECIATION does not directly affect net income but is instead the total amount of a company's depreciation expenses charged against its net income over the lifetime of an ASSET or group of assets. Accumulated depreciation is an asset ACCOUNT on the BALANCE sheet with a credit balance.

Accumulated depreciation does not directly affect net income but is instead the total amount of a company's depreciation expenses charged against its net income over the lifetime of an asset or group of assets. Accumulated depreciation is an asset account on the balance sheet with a credit balance.



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