How will depreciation affect PAT?

Question Posted / avinash

4 Answers
13786 Views
I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

How will depreciation affect PAT?..

Answer / santosh kalburgi

PAT is the result of the profit reduced by depreciation,
interest and then tax. The depreciation saves the company's
money in terms of tax shield on Depreciation. When the
company shows the depreciation the profit reduces to that
extent, and so when that remaining income is taxed, tax
amount to the extent of depreciation gets saved.

Is This Answer Correct ?

17 Yes

0 No

How will depreciation affect PAT?..

Answer / dayal singh

it will save ur profit which is to be distributed

Is This Answer Correct ?

4 Yes

0 No

How will depreciation affect PAT?..

Answer / vijay nimhan

PAT is known as profit after tax.if depreciation is not
reduced the PAT gets increase and it shows wrong net
profit.

Is This Answer Correct ?

4 Yes

1 No

How will depreciation affect PAT?..

Answer / hemanth.batchu

Most of the people think that if depreciation will increast
the profits and the reduce the taxes but strictly speaking
it wount, if we brought a asset worth of 100 crore this
year or next year we have to get the full amount before it
will die,Bcos to buy new one. so depreciation will help the
company acc to show when ever they want to show. the
relation ship is vise versa

Is This Answer Correct ?

0 Yes

5 No

Post New Answer

More Banking Finance Interview Questions

What are the difference between B.com and M.com

14 Answers Triveni,

Where does closing stock appear in the trial balance?

1 Answers BNY Mellon,

Are LIC policies used by people to save tax?

0 Answers LIC,

Finding a genuine provider of financial instrument is very challenging but we are certified Financial Instrument providers in United Kingdom. Presently, we only focus on BG/SBLC for Lease and Sale transactions. However, our Lease BG/SBLC is 6+2% and Sale at 40+2%. Should you find this interesting and acceptable? Kindly, contact us and we shall review and respond with draft Contract/MOU within 48hrs maximum. Please request for full procedure details if interested. For further inquiry contact: Diderot Denis Email:diderotdenis20@gmail.com

1 Answers Signals Europe,

Explain what is bridge equity?

0 Answers

What Personal Characteristics Should A Bank Clerk Possess?

0 Answers

These days Mutual Funds are common in the market. What do you know about them?

0 Answers IBPS,

When one party enjoys credit facilities by more than one banks who works in coordination with each other under a formal arrangement, what is the arrangement?

0 Answers

Explain debt service coverage ratio.

0 Answers

What are different types 'tax receipts'?

0 Answers

Accounts payable questions

0 Answers TCS,

What is Subsidy?

1 Answers

For more Banking Finance Interview Questions Click Here