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The depreciation to fixed asset ratio measures how diligently the company is replacing its old fixed assets with replacements. Companies will acquire fixed assets such as new buildings or machinery with hopes of gaining sales over the lifespan of those assets.

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What is The term applied to the periodic transfer of a fixed asset's cost to expense is?

Depreciation


The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed?

Net Fixed Assets is the term used for the difference between the balance of a fixed asset account and the related accumulated depreciation.


What is a Depreciation Expense in accounting?

Depreciation expense is the process of reducing the cost of fixed asset during the fiscal life of a long term asset through annual fixed amount of expense charged to profit and loss account of business in which that long term asset is utilized in business to generate revenue.


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.


What means by?

I think you meant to ask what is depreciation. This is the value given to the wearing out of assets in accounting term. When you buy an asset like a Car the value of it will always go down as you use it. In Accounting this is called depreciation and you have to provide for it when doing the accounts.


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 means by deprecations?

I think you meant to ask what is depreciation. This is the value given to the wearing out of assets in accounting term. When you buy an asset like a Car the value of it will always go down as you use it. In Accounting this is called depreciation and you have to provide for it when doing the accounts.


When is the cost of a long term assets expensed?

Cost of long term asset is expensed through depreciation in income statement for entire useful life of an asset.


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.


Is machinery asset or liability?

Machinery is considered an asset because it represents a valuable resource that a business uses to generate revenue. It is classified as a fixed asset on the balance sheet, reflecting its long-term utility and contribution to the company's operations. While it may incur maintenance costs and depreciation over time, these do not change its status as an asset.


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.


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.