0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Accumulated Depreciation is reported on the income sheet?
no. accumulated depreciation goes under non current asset on the Balance sheet
What are the reasons for charging depreciation on non current assets?
depreciation non current asseate
Does accrued depriciation go in asset non current where you subtract?
Accumulated Depreciation is a contra-account, meaning it is shown as a negative, in the Fixed Asset section of the Balance Sheet.
Is premises a current asset or non current asset?
non-current assets.
Is fixtures and fittings a current asset or a non current asset?
non current
Depreciation on Fixed Asset is a operating expenses or not?
Depreciation on Fixed Asset (Furniture, Building) are considered as Non-Current Assets
Accumulated Depreciation is reported on the income sheet?
no. accumulated depreciation goes under non current asset on the Balance sheet
What are the reasons for charging depreciation on non current assets?
depreciation non current asseate
Does accrued depriciation go in asset non current where you subtract?
Accumulated Depreciation is a contra-account, meaning it is shown as a negative, in the Fixed Asset section of the Balance Sheet.
What is the advantages of exit price accounting?
it is relevant and reliable information. The information is useful to the users. The reality is the use of exit price accounting involves references to real world example. For example, depreciation is a decline in the market price of non current asset. There is no depreciation when there is increase in price or no changes in value of the non current asset.
Is money lent by a bank a current asset or non current asset?
non current asset
Is premises a current asset or non current asset?
non-current assets.
Is fixtures and fittings a current asset or a non current asset?
non current
Is the deprecation expense on the income statement a non cash expense?
Correct. When a long-term tangible asset is purchased (e.g., property, plants and equipment), the Matching Principle under GAAP requires expenses to be systematically matched with the periods in which the corresponding revenues are generated. All depreciation expense does is systematically expense the asset over the period of its useful life. The useful life of the asset has nothing to do with when cash was actually paid for the asset.
What is the treatment of accumulated depreciation and depreciation in the event of asset disposal?
When the asset is disposed of the Accumulated Depreciation is subtracted from the cost of the asset. Journal Entries: If Sold at a Profit: Dr Accumulated Depreciation (All Depreciation) Dr Bank/ Recievable (Amount received for Asset) Cr Asset (Carrying Value on Balance Sheet) Cr Profit on Asset Disposal (Balancing Figure) If Sold at a Loss: Dr Accumulated Depreciation (All Depreciation) Dr Bank/ Recievable (Amount received for Asset) Dr Loss on Asset Disposal (Balancing Figure) Cr Asset (Carrying Value on Balance Sheet) Please note there may also be current year depreciation
Can depreciation be for fixed asset only?
Depreciation is the method of allocating the amount of fixed asset to the fiscal year in which that asset utilized and it is only applicable to fixed assets because current assets are fully utilizable in current year that's why full amount of current assets are charged to income statement.
Is freight a current asset or non current asset?
it is a expense
