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WHAT IS ASSET DEPRECIATION RUN? TELL ME IN DETAILED.
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Answer Posted / m
A continuation to the explaination provided above
The assets are on the balance sheet and so when they fall in
value, that's an expense for the company - the 1,000/yr in
the example above.
The asset depreciation run will generate an accounting
transaction to lower the value of assets as maintained in
the asset account and charge that to an asset depreciation
account - en expense. Even though no cash flow is involved,
this transaction lowers the profit (incr loss) of the business.
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