Asked by
jerome williams
on Nov 18, 2024
Verified
As a company records depreciation expense for a period of time, cash is accumulated to replace fixed assets as they wear out.
Depreciation Expense
The allocation of the cost of an asset over its useful life, reflecting the usage and wear and tear of the asset.
Accumulated Cash
The total amount of cash that a company has generated and saved over its history, minus any cash payments or dividends made to shareholders.
- Learn the impact of depreciation on financial statements and cash flow.
Verified Answer
MW
Learning Objectives
- Learn the impact of depreciation on financial statements and cash flow.