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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)

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โˆ™ 2009-04-23 02:12:42
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Q: What does fully funded depreciation mean?
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Related questions

What is't mean by sport funded?

sport funded mean that you are funded for a sport

When an asset is fully depreciated should the total accumulated depreciation for that asset be zeroed out?

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.

What is book depreciation mean?

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.

Is depreciation an example of the matching concept?

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.

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.

What is book mean?

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.

Is Saab going bust?

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

What is the journal entry to write off an asset acquired and fully depreciated within the year?

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

What does depreciation have to do with net income?

The total depreciation for an accounting period is recorded as a depreciation expense on the income statement. This reduces net income, which is also known as the bottom line. Net income equals revenues minus expenses. Higher depreciation expense contributes to higher total expenses, which results in lower net income. Companies with mostly older assets that have been fully depreciated and companies with few long-lived assets benefit from low depreciation expense and higher net income.

What is the journal entry to write off a fully depreciated asset?

debit accumulated depreciationcredit fixed asset

When a magazine reports that there has been a depreciation of the dollar what does this mean?


How are fully depreciated assets reported in the balance sheet?

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.

What does it mean to be state funded?

A state-funded school is when the budget comes from public sector funds. This can be from the local education authority or from central government.

How are accumulated depreciation and depreciation expensese related?

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.

What does residue value mean?

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

What does ACE mean on a depreciation report?

Adjusted Current Earnings

Why current assets are not depreciated?

current assets are not depreciated because depreciation process is use to allocate long term asset cost to specific fiscal year in which it used if fixed assets also fully used in one fiscal year then there is no need of depreciation as well.

I will be retiring this year. Is my pension (fully funded by the employer) subject to federal withholding?

Pension benefits are subject to federal income tax.

What does depreciation mean?

Depreciation means the reduction price of the fixed assets by consumption. It is an expense for business. In layman's terms, as regards the depreciation of a car, for instance, depreciation occurs when something loses value over time.

What is difference between accumulated depreciation and provision for depreciation?

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.

Distinguish between depreciation policy and the concept of depreciation?

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.

What is the journal entry to record a fully depreciated fixed asset that was received as a donation?

Debit accumulated depreciationCredit fixed asset

Why accumulated depreciation exceed depreciation expense?

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.

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.

How do you use the word fully in a sentence?

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.