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What does fully funded depreciation mean?


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2009-04-23 02:12:42
2009-04-23 02:12:42

This is the amount saved to replace assets at the end of their useful life. [1]

[1] The Financial Management of Hospital and Healthcare Organizations. Michael Nowicki (2008)


Related Questions

sport funded mean that you are funded for a sport

After an asset is fully depreciated, the assets and accumulated depreciation accounts are zerod together in the beginning of the next accounting period. When an asset is fully depreciated but still operates in the company, accountants usually leave the asset and its accumulated depreciation accounts in the records even after it's fully depreciated and even through next periods, just to show that this asset still exists and operates.

The depreciation rate for accounting may be different than that of taxation. The depreciation as per books of accounts may often be termed as book depreciation while that calculated under tax law is termed as tax depreciation.

Yes depreciation expense is also an example of matching concept as in this way part of fixed asset cost is apportioned to income statement and depreciation is not used in cash basis of accounting as there cash purchase is fully expensed in purchasing year.

debit accumulated depreciationcredit 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.

No, Saab have been sold to Spyker Cars and have a fully funded business plan.

Accumulated depreciation and depreciation are related with each other as depreciation is annual expense while accumulated depreciation is the sum of all annual depreciation expenses.

is it the value of what remains after depreciation from an asset

Accumulated depreciation shows the depreciation for specific asset which is already charged while provision of depreciation is created to charge depreciation before actual depreciation is occur.

Depreciation expenses is for one specific fiscal year while accumulated depreciation is the sum of all depreciation expenses that’s why accumulated depreciation exceeds the depreciation if there is depreciation expense in prior year as well.

Depreciation policy is management thing that what depreciation method to use and how much depreciation to charge to each asset. Depreciation concepts are concepts which govern the depreciation process which management cannot change they are universal rules to follow depreciation that how straight line depreciation work etc.

[Debit] Depreciation expense[Credit] Accumulated depreciationAfter that depreciation is shown as part of income statement while accumulated depreciation goes to balance sheet.

Journal Entry:Accumulated Depreciation A/c xxxxFixed Asset Account xxxx

[Debit] Accumulated Depreciation [Debit] Cash (if any) [Credit] Assets

Fully Depreciated Assets are reported on the Balance Sheet as always, with one extra account. Accumulated Depreciation. For Example if a company has a Truck that cost $25,000 and it has been fully depreciated, the entries for the Balance Sheet are Equipment- Truck $25,000 Less Accumulated Depreciation (*****) Fixed assets remain on the books until said asset is sold, salvaged, or destroyed.

Please make sure the security door is fully closed.I want to make sure you fully understand the consequences of your actions.You need to be fully aware of what goes on around you.

If asset is acquired in same year of fully utilized then there is no depreciation rather full cost charged to that specific period.

Debit depreciation accountCredit accumulated depreciation

Debit accumulated depreciationdebit loss on disposalCredit fixed asset

Depreciation is for a particular year (say for Year 3). Accumulated depreciation is the aggregate of depreciation from the beginning (say from Year 1 to Year 3)

Every thing will have depreciation . depreciation is rule of nature.

The accumulated deprecation is the all the depreciation amounts should be the accumulated depreciation.

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