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Operating Assets

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What are operating assets? What are some examples and how can depreciation affect them?

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Solution Summary

This solution explains operating assets, and also explains how they are affected by depreciation.

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Operating assets are assets used in the revenue generating activities of the business. Examples of operating assets include plants, factories, machinery, inventory, and equipment. Depreciation affects operating assets mainly from a financial statement standpoint. Let's say a company buys a machine for $500,000. ...

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