One effect of recognizing depreciation is to decrease net income.

Name: One effect of recognizing depreciation is to decrease net income.
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Quizplus · Accepted Answer

Depreciation is an expense that reduces the value of an asset over its useful life. When depreciation is recognized, it is recorded as an expense in the income statement, which in turn reduces net income. This is because net income is calculated by subtracting all expenses, including depreciation, from revenues.

One Effect of Recognizing Depreciation Is to Decrease Net Income