Depreciation helps in determining

Name: Depreciation helps in determining
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. It helps in determining the accurate level of profit by accounting for the decrease in the value of assets used in the business, ensuring that the profit reported on the income statement reflects the true economic benefits derived from the use of those assets.

Depreciation Helps in Determining