Well depreciation is something that is inevitable in any form of business but it most be avoided at all time and at all cost so to avoid high levels of loss In the business organisation because it will affect the income of the business.
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I have seen business owners include depreciation on a balance sheet and on an income statement, both would signify slightly different things though. Depreciation is the reduction in the value of assets.Depreciation is the deduction of the value of an asset or product when a product is depreciated, it will definitely have a negative impact on the total financial expenditure.
Depreciation of customers happens when the customers no longer trust the product a company is producing any more and they stop patronising the company which can slow down the business.Depreciation of costomers affect market the financial statement of a business and will also slow down the business, as a wise because man you must always maintain your costomers to avoid depreciation of customers.
When your money keeps losing value it is definitely going to be affecting your business in a very negative work because things are no longer going to be the way it is supposed to be.On the income statement, depreciation is usually shown as indirect, operating expenses. It is an allowable expenses that reduces a company's gross profit along with other indirect expenses like administrative and marketing cost.
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