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Why is an accumulated depreciation account used in making the adjustment for depreciation?
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What is provision for depreciation?
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 asset account. For calculating correct profit or loss on fixed asset. This provision uses with any method of calculating depreciation.
Where does the accumulated amortization account in a trial balance go Would it be listed under current assets although there is no balance at first or at the bottom when making adjustments?
yes
Where does the accumulated amortization account in a trial balance go. Would it be listed under current assets although there is no balance at first or at the bottom when making adjustments?
yes
What is the time period to utilise unaccounted depreciation?
Depreciation in any year that must be accounted for is the amount that is "allowed or allowable". It is maintained in the accumulated depreciation account. It is a form of a reserve. Depreciation process may actually properly be called "cost recovery". Hence, there is never any unaccounted depreciation. (I can't be sure of what you may even mean, and suspect you don't really have any idea yourself and are just making up terms!) There is of course frequently, a remaining book value to the property, undepreciated either because it required a resideual value be set up or it has not been owned for it's depreciable life. That is the basis used upon disposal or sale. Some things have very long depreciable lifes so there is still more to be taken, many things....land especially...does not depreciate at all and any cost is recovered on disposal.
Depreciation on delivery truck is product cost?
Depreciation on delivery truck is period cost as it is not necessary for the making of product.
What you meant by Self balancing system?
when separate ledgers are maintained for trade debtors and trade creditors ,the debit and credit aspect of certain transactions will note appear in the same ledger Eg: in case of credit sales ,the credit aspect (Sales account) will appear in general ledger whereas the debit aspect (personal account of debtor)will appear in debtors ledger .Take another Eg.like cash discount allowed by a creditor .The credit aspect (personal account of the creditor )will appear in creditors ledger .Thus no ledger is self balancing and it is not possible to prepare a separate trial balance for each ledger .Hence in ,in order to make each ledger self -balancing it is necessary that the corresponding debit and credit aspects are fully "adjustment accounts " in each ledger . the adjustment account helps in completing the double entry in each ledger and making it self balancing . The adjustment account opens in various ledgers are; 1 ) general ledger adjustment account(in debtors ledger) 2 ) general ledger adjustment account(in creditors ledger) 3 ) debtors ledger adjustment account (in general ledger) 4 ) creditors ledger adjustment account (in general ledger)
How does depreciation of a country's currency improve that country's competitiveness in foreign trade?
Depreciation lowers the price level ratio of the country to other countries, lowering exchange rates, and making it cheaper for foreigners to buy the country's goods, increasing exports. Thus, depreciation artificially lowers the cost of all goods produced by a country, making them more competitive.
What are the advantages of straight line methods?
Straight-line depreciation methods are easy to understand and calculate, providing a constant depreciation expense each year. This method is widely accepted and used by companies for financial reporting purposes, as it provides a systematic and consistent way to allocate the cost of an asset over its useful life. Additionally, straight-line depreciation offers a clear and predictable rate of depreciation, making it easier for businesses to budget and plan for future expenses.
The book value of old equipment is not a relevant cost in a decision?
That's correct. The book value of old equipment represents its historical cost and accumulated depreciation, which is not relevant for decision-making because it does not reflect the current market value or the future costs and benefits associated with the equipment. When making decisions, it's important to focus on relevant future costs and benefits rather than past historical costs.
Does improvements by the owner of the property being leased quality for leasehold improvements bonus depreciation?
yes, the a lessor making the improvements for the benefit of a lessee or sublessee is eligible for bonus depreciation, assuming all other qualifications are met.
Is making a minecraft account free?
Yes, making an account is free. You have to pay to play the game, though.
Can you change your age on MySpace after making a MySpace account?
Yes, I believe that you can change your age on Myspace after making an account.
