0
The cost of a depreciable asset less accumulated depreciation reflects the book value of the asset?
Wiki User
∙ 11y ago
true
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is the difference between accumulated depreciation and an depreciable asset?
Depreciable asset - accumulated depraecation = net of Depreciable asset (PPE) Which is the reported PPE(net)
The carrying value of a depreciable asset equals?
The carrying value (or book, or, net value) of a long term asset equals cost minus accumulated depreciation.
The difference between the cost of an asset and the accumulated depreciation for that asset is called?
Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.
Example of Contra-Asset Account?
Accumulated Depreciation
Is accumulated depreciation a contra asset account?
Yes
What is the difference between accumulated depreciation and an depreciable asset?
Depreciable asset - accumulated depraecation = net of Depreciable asset (PPE) Which is the reported PPE(net)
How is the net book value of a depreciable asset calculated?
The net book value of a depreciable asset is calculated by deducting the accumulated depreciation from the original cost of the asset. Accumulated depreciation is the total depreciation expense recorded over the life of the asset. This calculation allows for the determination of the asset's value at a specific point in time.
The carrying value of a depreciable asset equals?
The carrying value (or book, or, net value) of a long term asset equals cost minus accumulated depreciation.
What is accumulated depreciation?
The accumulated deprecation is the all the depreciation amounts should be the accumulated depreciation.
The difference between the cost of an asset and the accumulated depreciation for that asset is called?
Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.
Does accumulated depreciation increase with a credit?
accumulated depreciation is an asset, so it will increase with a debit.
What is accumulated depreciation on a statement of cash flow?
Accumulated depreciation is the amount of a long-term's asset's cost that has been allocated to depreciation since the time the asset was acquired.
Is Accumulated depreciation debit or credit?
Accumulated depreciation is a contra to related asset so if asset has a debit balance then it has credit balance to reduce the related asset's value.
What is depreciable asset?
Depreciating asset is that asset which is utilizing by business in generating revenue and cost of asset is allocating to income statement through depreciation.
Does buildings go on the balance sheet?
Yes, buildings are typically included on a company's balance sheet as a long-term asset. They are recorded at their historical cost less any accumulated depreciation, and their value is listed under the "property, plant, and equipment" section.
What is the purpose of depreciation expense and accumulated depreciation?
Depreciation expense reduce the cost of asset through income statement for the useful life of asset and accumulated depreciation account is contra account for asset account in balance sheet to show the total amount of depreciation charged.
Can depreciation on a Fixed Asset be carried as a contra-asset on its own line on the balance sheet or does it have to be deducted from the Fixed Asset?
Depreciation of a Fixed Asset is always carried on the Balance Sheet in the Accumulated Depreciation Account (contra-asset). It is never deducted from the Fixed Asset.One reason for the Accumulated Depreciation account is that eventually, individual assets will be fully depreciated and their net values will be zero. If the depreciation were deducted from the asset, it would "fall off" the balance sheet. The accumulated depreciation account allows the assets to remain at book value in the asset account to maintain their visual presence on the books.The depreciation entry debits depreciation expense and credits accumulated depreciation.
