Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / seetu
Depreciation refers to two very different but related
concepts:
decline in value of assets, and
allocation of the cost of tangible assets to periods in
which the assets are used.
The former affects values of businesses and entities. The
latter affects net income. Generally the cost is allocated,
as depreciation expense, among the periods in which the
asset is expected to be used. Such expense is recognized by
businesses for financial reporting and tax purposes.
Methods of computing depreciation may vary by asset for the
same business. Methods and lives may be specified in
accounting and/or tax rules in a country. Several standard
methods of computing depreciation expense may be used,
including fixed percentage, straight line, and declining
balance methods. Depreciation expense generally begins when
the asset is placed in service. Example: a depreciation
expense of 100 per year for 5 years may be recognized for
an asset costing 500
| Is This Answer Correct ? | 1 Yes | 1 No |
Post New Answer View All Answers
What is account in accounting?
Define dual aspect term in accounting?
Sir how the enter of GST adjust of sales return
Explain the meaning of long-term notes payable is or long term liabilities?
how to we pass a purchase entry in item invoice mode where some advance has been paid to the party. the purchase entry should get offset with the advance payment entry so that it does not appear in the bill outstanding or bills due list. please guide.thank you
Volga is a large manufacturing company in the private sector. In 2007 the company had a gross sale of Rs.980.2 crore. The other financial data for the company are given below: Items Rs. In crore Net worth 152.31 Borrowing 165.47 EBIT 43.17 Interest 34.39 Fixed cost (excluding interest) 118.23 Calculate: a. Debt equity ratio b. Operating leverage c. Financial leverage d. Combined leverage. Interpret your results and comment on the Volga’s debt policy
What is fbt (fringe benefit tax)?
What is the disadvantage of double entry system?
GRIR is the clearing account so it the balance will be zero, so how it will impact with balance sheet and why we require to reconcile that account ?
M/s ABC Brothers, which was registered in the year 2000, has been following Straight Line Method (SLM) of depreciation. In the current year it changed its method from Straight Line to Written Down Value (WDV) Method, since such change would result in the additional depreciation of Rs. 200 lakhs as a result of which the firm would qualify to be declared as a sick industrial unit. The auditor raised objection to this change in the method of depreciation. The objection of the auditor is justified because (a) Change in the method of depreciation should be done only with the consent of the auditor (b) Depreciation method can be changed only from WDV to SLM and not vice versa (c) Change in the method of deprecation should be done only if it is required by some statute and change would result in appropriate presentation of financial 6 statement (d) Method of depreciation cannot be changed under any circumstances
What is journalizing?
where to show Preliminary expenses except "Statement of changes in working capital" in Fund flow statement?
What are the fictitious assets?
I am working in govt. sec. How to make journal entry in books for Fix Deposit
Tell me the types of accounts involved in double entry book-keeping?
