Depreciation as a Funding Source

AFM Capital Structure and Cost of Capital Free JAIIB Capsule 21 views Updated 19 Sep 2026

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AFM · Capital Structure and Cost of Capital

Firms accumulate funds due to depreciation accounting. Why is it incorrect to view depreciation funds as a completely free source of capital for new projects?

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Firms accumulate funds due to depreciation accounting. Why is it incorrect to view depreciation funds as a completely free source of capital for new projects?

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This capsule covers Accounting & Financial Management for Bankers, Capital Structure and Cost of Capital. Members get the complete explanation plus every other premium capsule, mock test and PDF.

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