Answer:
Depreciation is the allocation of the cost of capital assets over their useful life. Since capital assets are held for use in more than one accounting period.
Explanation:
Depreciation is an accounting method for allocating the cost of a tangible asset over time.
Depreciation is found on the income statement, balance sheet, and cash flow statement. It can thus have a big impact on a company’s financial performance overall.
Ultimately, depreciation does not negatively affect the operating cash flow of the business.
