How does depreciation affect the income statement


Assignment:

Imagine you own a business and discuss the following information:

•Identify and describe your business for this assignment (e.g. Clothing Store, Landscaping business, Delivery service, or Restaurant).

•Give an example of a long-term asset that the business owns.

•Classify the asset (i.e. building, equipment, furniture & fixtures, etc.)

•What depreciation method will you use to depreciate this asset? Explain Why.

•How does depreciation affect the income statement and balance sheet?

•Explain how depreciation might affect your decisions to purchase expensive equipment or real estate.

 

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Business Management: How does depreciation affect the income statement
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