Accounting For Depreciation
Accounting for Depreciation is used to measure the cost of an asset to the income that the asset helps the company earn. For accounting purposes, depreciation signify how much of an asset’s value has been used up, that is called accounting for depreciation.
Accounting For Depreciation Learning Objectives: Define and explain the term “depreciation”. Why does depreciation calculated and charged? What are the different methods for providing depreciation? Definition and Explanation of Depreciation: The value of assets gradually reduces on account of use. Such reduction in value
Basic Factors of Determination of Depreciation: Learning Objectives: What are the basic factors of depreciation determination? For calculation depreciation the basic factors are: The original cost of the asset. The estimated working life of the asset or the number of years the asset is