What is the difference between cash paid for equipment and depreciation expense?
Question:
What is the difference between cash paid for equipment and depreciation expense?
Expenses:
Expenses refer to the cost of operations that the company incurs to make money or revenue. Basically, it is divided into two main parts, i.e. operating fees and non-operating expenses.
Answer and Explanation: 1
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View this answer- In cash paid for equipment expense, cash is actually paid, but in depreciation expense, there is no cash included.
- Cash paid for equipment is recorded...
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Depreciation: Definition, Formula & Examples
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Chapter 5 / Lesson 14Learn about different methods of depreciation and depreciation expense, including: straight-line and declining methods, as well as the difference between physical depreciation and economic depreciation.
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