What is the immediate accounting consequence of the acquisition of a depreciable asset?

Question

Quizplus · Accepted Answer

The immediate accounting consequence of acquiring a depreciable asset is the prepayment of depreciation expense, meaning that the cost of the asset is allocated over its useful life through depreciation. This reduces the reported net income of the company and affects the statement of profit or loss. However, it does not impact the cash flow measurement, statement of financial position classification, or holding assets for sale.

What Is the Immediate Accounting Consequence of the Acquisition of a Depreciable