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This process will give you the depreciation tax shield, which should theoretically increase a company’s valuation by having a positive impact on free cash flows (FCFs). By using the depreciation tax shield, businesses can reduce their taxable income and lower their tax bill. This can be especially helpful for businesses with high asset costs, as

The next and final step in the accounting cycle is to prepare one last post-closing trial balance. On the balance sheet side, closing entries move everything into retained earnings, which is a permanent account. These examples show how crucial closing entries are for keeping your accounting records accurate and organized, no matter the size or