Because of depreciation, the net carrying amount of an asset declines over time and profit is reduced by the amount of the expense.

Name: Because of depreciation, the net carrying amount of an asset declines over time and profit is reduced by the amount of the expense.
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Quizplus · Accepted Answer

This statement is true. Depreciation is an expense that recognizes the decline in value of an asset over time. As a result, the net carrying amount of the asset decreases and this expense is subtracted from revenue to calculate profit.

Because of Depreciation, the Net Carrying Amount of an Asset