[Solved] Charging excessive provision for depreciation results in

Charging excessive provision for depreciation results in

a) Less profit

b) More profit

c) No change in profit

d) No change in loss

Answer: (a) Charging excessive provision for depreciation results in less profit. Effect of depreciation on profit and loss account: Depreciation is debited in the profit and loss account. So, if the depreciation considered is more, it will result in the projection of more expenses resulting in an excess debit balance.

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