When you deduct depreciation from your balance sheet...

when you deduct depreciation from your balance sheet, you are deducting a certain value from your income statement either, where is it going for? Is it going to a bank account to help buying the substitute for that good? or is it only some tax bureaucracy?

BBBRAAAAAAPP
sauce on this babe OP

6/10

it will reduce your fixed asset value on the balance sheet. Also, it'll be a negative on your statement of cash flows. the purpose is as a tax deduction

but the money will be available for me as profit? cause if i have 100k in a bank account and my depreciation is 20k, im gonna have 80k in the asset, but in real life it will be 100k, where is the 20k going for IRL?

That's some high standards you have there. Fat juicy thighs, nice titties, pretty face with little makeup 9/10 for me.

Zoom in on the face, nothing special. Tits and thighs standard for her weight. Supposedly fingering herself, nipples not even hard. Mediocre in every way, the only thing she has is youth.

You can't depreciate cash. You depreciate assets. Say a company buys 100 new laptops at 1k a piece is fiscal year 2107. The company decides to depreciate that asset over 3 years evenly. That means they only have to recognize 100K deducted from cash, 33.3k in fy 2017 expense, and then 67.6k is added to the temp restricted assets on the balance sheet.

In fiscal year 2018 the company releases 33.3k from temp restricted assets, and recognizes 33.3k in expense on the income statement. The same thing happens in 2019.

The end result is that at the end of 2019, there is nothing left in temp restricted assets, and you recognized 33.3k in expense on the income statement in 2017, 2018, and 2019.

As you can see, the purpose of depreciation is to pay cash for an asset now, but recognize the associal ed expense over a number of years.

I find it way easier to evaluate cash flow / free cash flow while evaluating equities. There is too much jewing going on with income statements. Follow the cash.

Natalie Austin. lrn2googleimagesearch faggot

it actually makes sense, especially with smal/medium business. The biggest problem i have with accounting in general is that you have real life accounting, how to be robbed by the gov accounting and big company accounting. and the first one is extremely underrated.

Pajeet

What the FUCK is up with that thumb?

It's not money as profit - profit is only a result of income less expenses. Depreciate is the recording of an asset's loss of value. Since it is a cost associated with doing business, it reduces your EBITDA (earnings before interest, taxes, depreciation, and amortization). If you can lower your EBT as much as possible without reducing revenue, you have a lower tax burden. This is exactly why businesses choose to finance their operations with debt rather than cash - because it lowers the tax burden. dawg.

D&A is a non-cash expense, that's why you add it back to net result in your cash flow calculation

Depreciation is essentially systematically recording how much you believe you've used up an asset, over a given period.

It's recognized as an expense because it represents a decrease in an asset.

Since it's an expense, it's recorded under expenses in the Income Statement for the period it relates to, and a corresponding contra-asset account called Accumulated Depreciation is created in the balance sheet (if it's not already there) in order to keep record of all the depreciation recorded against an asset.

She had her fake nails peeled the same time she got her vag waxed.

To be more specific about why it's an expense: it results from a THEORETICAL decrease in an asset, more specifically an increase in a contract-asset (which is similar to a liability), and this decrease was not due to a distribution to owners. Therefore, it's recognized as an Expense.

*contra-asset

Sorry, autocorrect

too thich for me tbqh

bet you her vagina and asscrack is sweaty af all the time, and her armpits stinks

tbqh her face is the real price, top qt

could lose a little weight tho