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As over time businesses assets will lose their value, businesses need to
reflect this in their accounts. Depreciation is the tool used by accountants
to record the reduction in the original value of an asset.
Depreciation allows for this through calculations. It is in the balance sheet
under fixed…

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that the business is over valued is matched against the higher
and is misleading. amount of revenue generated by
increased production by the use of
new asset.

It is useful for assets such as a As for some assets, the more it
lease where the life of an asset ages,…


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