Depreciation is the decrease in the value of asset annually. Depreciation is the allocation of money of an asset over its useful life. Accounting treatment of depreciation is that fixed asset less amount of depreciation the result will give the current value of asset.
The double declining method of calculating depreciation is a kind of depreciation method in which the large amount of depreciation is calculated during the beginning years of the useful life of a certain fixed asset. The double declining balance method of depreciation is used
Depreciation can be defined as a reduction in the recorded cost of a fixed asset. There are a number of fixed assets that are routinely depreciated every year such as buildings, furniture, office equipments and other physical things. The land is the only fixed
Depreciation is one of the basic accounting terms that is applied to the degree of wear and tear that happens to a firm’s assets. With the help of depreciation accountants can calculate whether it is time to replace the assets or not. It also
Annuity Method of Depreciation: Learning Objectives: What is annuity method of depreciation? Where is it adopted? According to this method, the purchase of the asset concerned is considered an investment of capital, earning interest at certain rate. The cost of the asset and also
Depreciation Methods: Learning Objectives: What are the various methods for depreciation? Fixed assets differ from each other in their nature so widely that the same depreciation methods cannot be applied to each. The following methods have therefore been evolved for depreciating various assets: Fixed
Depreciation, Depletion and Amortization: Learning Objectives: What is the difference among depreciation, depletion, and amortization. Depreciation: The term depreciation is used with reference to tangible fixed assets because the permanent continuing and gradual fall in book value is possible only in the case of
Double Declining Balance Method of Depreciation: Learning Objectives: Define and explain the double declining balance method of depreciation. What is double declining balance formula and and also provide example. Double declining balance method is another type of accelerated depreciation method followed generally in USA. The depreciation expense is computed by