net assets decrease and profit decreases
1.net assets decreases and profit decreases 2net assets remain the same and profit decreases
No amortization is done for intangible assets like depreciation for tangible assets and it also does not involve cash expense.
Depreciation Expense reduces net income and has no effect on cash flow.
no
An increase in Land and a decrease in cash, total effect is zero.
It reduces cash in the bank.
Yes, it may arise on unrealised profit on unsold stocks, profit element of upward review of assets.
Income is all the money a company takes in (hence the name) expense is all the money a company spends profit is income - expense. just because expense > income doesn't mean there is no income. It means there is no profit.
Debit: Profit & Loss Account Credit: Cash In Hand or Petty Cash Nature of Debit is Expense and the nature of Credit is Asset. Expense Increased and Asset Decreased If you have an account already open for such Losses then you should debit such account. For example in my company Cash loss is usual Case so we have an Account titled "Cash Lost Expense" In my cash I will pass the entry as Debit: Cash Lost Expense Credit: Cash in Hand or Petty Cash
Depreciation Expense, though called an expense, is not an expense where the company actually pays money out. The statement of cash flows deals with the company's "cash flow" in order for a manager to see where the company's cash is going to and coming from. Since depreciation expense doesn't involve actual cash flow, it would not affect the Cash account.
Wages Expenses comes under "Cash flows from operating activities" and are part of net profit from operations.
A sales refund will reduce income (debit to Sales Returns) and assets (credit to cash). A debit to Depreciation Expense and a credit to Accumulated Depreciation will reduce assets and net income.