Depreciation helps keep the accounting equation in balance by matching the expense of a liability with the revenue that liability is expected to generate.

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Depreciation is the process of allocating the cost of a tangible asset over its useful life and is not directly related to liabilities or revenue generation. It helps in matching the cost of an asset with the revenue it helps to generate over time, but it does not involve liabilities.

Depreciation Helps Keep the Accounting Equation in Balance by Matching