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surely it is neither, it is merely just a reduction in marketable value and no money is paid or received with depreciation. it does not affect cash but is classed as an expense.
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The balance of accumulated depreciation account represents the?
amount charged to depreciation expense since the acquisition of the plant asset.
Is depreciation on plant and machinery part of conversion cost?
yes. The plant is used in the manufacturing process and tehrefor it is a direcct cost d
What is the smallest unit of time to calculate depreciation?
A calendar month is the smallest unit of time used to calculate depreciation. A plant asset may be placed in service at a date other than the first day of a fiscal period. In such cases, depreciation expense is calculated to the nearest first of a month. To calculate depreciation expense for part of a year, the annual depreciation expense is divided by 12 to determine depreciation expense for a month. The monthly depreciation is then multiplied by the number of months the plant asset was used that year.
The balance in the Accumulated Depreciation account represents the?
amount charged to expense since the acquisition of the plant asset.
What is plant assets?
Machinery is called the plant asset which is utilized to make production of units of product to earn revenue.
What is a plant asset on the balance sheet?
Plant asset is the machinery asset which a business use to make units of products for selling purpose to generate revenue for business.
The balance of accumulated depreciation account represents the?
amount charged to depreciation expense since the acquisition of the plant asset.
Does the Depreciation measure the actual decline in market value of an asset?
No. Depreciation is the process of allocating to expense the cost of a plant asset.
Is depreciation on plant and machinery part of conversion cost?
yes. The plant is used in the manufacturing process and tehrefor it is a direcct cost d
What is the smallest unit of time to calculate depreciation?
A calendar month is the smallest unit of time used to calculate depreciation. A plant asset may be placed in service at a date other than the first day of a fiscal period. In such cases, depreciation expense is calculated to the nearest first of a month. To calculate depreciation expense for part of a year, the annual depreciation expense is divided by 12 to determine depreciation expense for a month. The monthly depreciation is then multiplied by the number of months the plant asset was used that year.
What is rate of depreciation on battery?
13.91% since tubular batery will be grouped under the block plant and machinery
The balance in the Accumulated Depreciation account represents the?
amount charged to expense since the acquisition of the plant asset.
What is plant assets?
Machinery is called the plant asset which is utilized to make production of units of product to earn revenue.
The book value of a plant asset is?
The book value of a fixed asset (PP&E) is the difference between the fixed asset account and it's related accumulated depreciation account. You have a truck you paid $25,000 and you have depreciated it for the amount of $10,000 then the "book value" would be $15,000.
What is development rebate reserve?
The development rebate reserve is created out of development rebate. It is a special allowance, which the government extends in direct taxes to encourage investment, over and above depreciation on plant and machinery installed and commissioned. It is treated as the first charged on profits after depreciation. If, owing to inadequacy of profits it cannot be so charged, it can be carried forward to be charged against the profits of subsequent years. While depreciation reduces net value of the fixed asset and cannot exceed 100% of their original cost, development rebate leaves the net value of the assets untouched. The development rebate is applicable only to plant and machinery and not to all fixed assets. Both depreciation and development rebate augment the cash flow of a business.
How do you prepar balance sheet?
The question is incomplete. Anyway i will try to answer. Balance sheet prepare from Tial balance. All the items in Trial balance classifeid as Balance Sheet item and P&L item. All the balance sheet items taken from trial balance should be shown in balance sheet. Balance sheet have two side namely liability and asset side. In asset side we shows Fixed asset say plant machinery vehicle...., current assets say stock debtor cash in hand etc...The fixed assets can we shown two ways, before depreciation and put provision for depreciation in liabilty side or After depreciation. The next step is to create liablity side say capital, creditors...etc. The Net Profit taken from p&l a.c adjusted with partners current account. This is only for basic information.
Is Depreciation can be calculated on capital expenditure?
Depreciation on Capital Expenditure is nothing but Depreciation on fixed assets. Cash Flow statement shows the Capex incurred during the particular time period,i.e. for Quarter or fiscal year. A CAPEX is an amount spent to acquire or improve a long term asset such as plant,equipment or buildings. Usually the cost is recorded in an account classified as Property,plant and equipment.The cost (Except for the cost of LAND) will then be charged to depreciation expense over the useful life of the asset.
