Which of the 8 GAAP's are involved with depreciation and how?
no. Read More
Depreciation on fixed assets is added back to net income for preparing cash flows from operating activities because there is no actual cash flow involved in depreciation transaction. Read More
It reduces the net income because it is an expense. Expenses are deducted from income when computing the net income. It has no effect on cash flow because when the asset depreciates, there's no money involved. The only thing involved in depreciation is the carrying value of the asset. Read More
You discarded a display case that had 7200 of accumulated depreciation which was 8000 at original purchase what gain or loss are involved?
loss of $800 Read More
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. Read More
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. Read More
Depreciation expenses is for one specific fiscal year while accumulated depreciation is the sum of all depreciation expenses thatâ€™s why accumulated depreciation exceeds the depreciation if there is depreciation expense in prior year as well. Read More
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. Read More
[Debit] Depreciation expense [Credit] Accumulated depreciation After that depreciation is shown as part of income statement while accumulated depreciation goes to balance sheet. Read More
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) Read More
The accumulated deprecation is the all the depreciation amounts should be the accumulated depreciation. Read More
Every thing will have depreciation . depreciation is rule of nature. Read More
Using accumulated depreciation and depreciation expense is a way that businesses can realize the true value of assets. A piece of equipment, for example, is devalued every year by the process of amortizing the asset. This in turn is recorded as depreciation and depreciation expense. Read More
Debit depreciation account Credit accumulated depreciation Read More
There are three types of depreciation. Fixed Installment, Diminishing balance and Component Depreciation. Read More
[Debit] Depreciation account [Credit] Accumulated depreciation Read More
In accounting, depreciation is an allocation of a previous expenditure, while in economics depreciation represents a decline in current value. Read More
Provision of depreciation account is the account of provision of depreciation. First of all we should understand provision of depreciation .Provision of depreciation is the collected value of all depreciation. With making of this account we are not credited depreciation in asset account. But transfer every year depreciation to provision of depreciation account. Every year we adopt this procedure and when assets are sold we will transfer sold assets 'total depreciation to credit side of… Read More
When allocating depreciation, the two accounts affected will be an expense account - depreciation and a negative asset/contra-asset - accumulated depreciation. The journal entry would be: Dr Depreciation xxxx Cr Accumulated Depreciation xxxx This effectively raises the expense and decreases your asset. In the general ledger the depreciation account will be debited and the accumulated depreciation will be credited. Read More
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. Read More
"Depreciation Expense" is a Debit entry and the counter entry is "accumulated depreciation" on an asset which is a credit entry. Depreciation - DR. Amount X Acc. Depreciation - CR. Amount X Read More
Accelerated depreciation allows a company to take a higher upfront depreciation expense. Higher depreciation means a lower profit, and lower taxes to pay. Read More
What is the different between the cost of depreciation of a asset and its related accumulated depreciation?
Cost of depreciation assets and accumulated depreciation is same as accumulated depreciaton calculates how much depreciation is charged till date while remaining is current book value of assets. Read More
Depreciation is the one fiscal year expense portion while accumulated depreciation is the sum of all depreciations from purchase of assets to till date. Read More
Depreciation is calculated on the value of assets. This stupidity of calculating depreciation as per accounting and as per tax exists in India. Read More
Accelerated depreciation is method in which double rate for depreciation is used as compare to straight line method. Read More
It is a real contra account. The nominal account associated with depreciation is depreciation expense. Read More
Under straight line depreciation, fixed amount of depreciation is charged to every year while in declining balance method depreciation percentage remains same but depreciation is charged on remaining balance of asset due to which the amount of depreciation is different in every year. Read More
Accumulated depreciation is contra account to specific fixed asset to calculate the depreciation so that's why accumulated depreciation is shown in liability side or as a deduction from fixed asset. Read More
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. Read More
What is Depreciation Reserve? Read More
DR. Depreciation Expense XX Cr. Accumulated Depreciation - Equipment XX Read More
Depreciation is a period cost and not a product cost as depreciation is still charged even if there is no production or sale of goods. Read More
Is it customary for the depreciation expense account and the accumulated depreciation account to be equal?
No. Accumulated depreciation is depreciation accumulated every year and it will only increase and won't decrease. Depreciation expenses is incurred every year. Read More
depreciation is an estimation and every company estimate there own method's of depreciation which gives more option for fraud . because depreciation is a non cash expense. which can lead to big fraud. Read More
Depreciation is a term to mean that an item has lost original value. For most items, once it is sold, it immediately depreciates; such items as computers, vehicles, household items, and media all lose value. Sometimes it is quickly, sometimes slowly, but the hard reality is that everything loses value. Clothes, tech, furnishings...the biggest issue is in how to evaluate the rate of depreciation. In business, most federal depreciation guidelines allow for a ten year… Read More
Yes depreciation is included in contribution income statement as depreciation is part of fixed cost of company. Read More
Is there a depreciation chart that National Flood Insurance Program uses for personal property depreciation?
It is called (JOINT MILITARY/INDUSTRY DEPRECIATION GUIDE) Read More
The journal entry to record depreciation expense consists of a credit to Accumulated Depreciation and a debit to the asset being depreciated?
Debit is to depreciation expense. Read More
MT and MSL are two depreciation methods used in accounting. They are based on the linear method of depreciation. Read More
Yes; depreciation is considered to be an operating expense. Read More
Unavoidable depreciation factors like age of the object. Read More
If there is recoverable depreciation involved in the claim then when you send your adjuster the invoice showing the amount for repairs was less, they will subtract the difference between the adjusters check, and the amount of your invoice, from the recoverable depreciation amount. Lets say your adjuster estimate the repairs to be $1,000 RCV and they with held $500 in depreciation. So they cut you a check for $500 with the remaining $500 withheld… Read More
Depreciation expense is a nominal account which will goin to net income at the end of term. Accumulated depreciation is a contra account with capital assets which shows up in balance sheet. Read More
depreciation is a source of cash. because we charge depreciation in profit and loss but we added back in cash flow. remember one thing that capital expenditure= amount of depreciation Read More
In sum of year digit depreciation method depreciation is charged based on total number of years fixed assets is usable in business instead of using any percentage or fixed amount of depreciation. Read More
What event makes the accumulated depreciation account go up Are these debits or credits to accumulated depreciation?
Depreciating assets over time causes the Accumulated Depreciation to go up with a credit entry. The debit is to depreciation expense. Read More