What's the relation between depreciation and the balance sheet?
submitted by kanwaljit kaur

poppy

Depreciation reduces the book value of fixed assets on the balance sheet.

Because depreciation allocates the cost of an asset over time, this doesn't happen all at once. The asset's net book value decreases as depreciation expense accumulates.

theGOAT

Depreciation shows up on the balance sheet as a reduction in the value of your assets, like equipment or buildings. As assets get older and wear out, their value on the books goes down.