Question

What are the advantages and disadvantages of depreciation?

Answer 1

Advantages and disadvantages of depreciation are as follows:

Advantages of depreciation are:

1. Asset value can be written off completely
2. It helps in tax reduction
3. It helps in valuation of the asset

The disadvantage of depreciation is as follows:

1. The actual use of assets is not considered

Also read:

• True and False Questions on Depreciation
• What Is Depreciation
• MCQs on Depreciation

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