0
Depreciation should be treated as expense because the worth of the asset like machinery and building goes down as time goes by. This reduction in the amount cannot be collected by anyone and cannot be claimed. The company only has to bear this amount. Because of this depreciation is treated as an expense.
What else can I help you with?
Nature of account of purchases return?
i think it should be treated as an ""Expense""
Why should accumulated depreciation be treated as expense?
It is treated as expense because it uses to allocate the related assets cost portion to profit and loss account due to usage of fixed assets for revenue generation in fiscal year.
Renovation expense for building should be debited to?
If the expense is some major type and may change the expected life of building than it should be debited to the cost of building and also must be capitalized other wise it should be treated normal nature expense and directly debited to profit and loss account. Kindly give your response as well. thanx, Mekhaile email: mekhaie1@yahoo.com If the expense is some major type and may change the expected life of building than it should be debited to the cost of building and also must be capitalized other wise it should be treated normal nature expense and directly debited to profit and loss account. Kindly give your response as well. thanx, Mekhaile email: mekhaie1@yahoo.com
Is insurance an operating expense or general expense?
it depends on the type of insurance.. workers compensation insurance, health, dental, or vision are all payroll expense.. building insurance is an operating expense.. Payment of insurance premium should always be treated as general expense,to be shown in the debit side of the Profit & Loss A/c of a Company,whether it is payroll expense for its employees. While preparing individual Balance Sheet, payment of insurance premium where life, medical,home owner or else, should be shown as payment/expenditure and to claim benefits under Income Tax Act.
Is Section 179 deduction treated as an expense item?
It is depreciation. Depreciation, or cost recovery, is a method of taking the cost of an item as an expense over its usefull life.
Restructuring charges be classified as an operating expense or as a nonoperating expense?
Should restructuring charges be classified as an operating expense or as a nonoperating expense?
Dividend account is treated as either asset account liability account or expense account?
Hi, Dividends are paid out of retained earnings (part of Capital) therefore I think Dividends can not be treated as an expense (the prudence being increase in Capital can not be treated as Revenue thats Cash generation while dividends are Surplus appropriation). regards, Zeeshan
How should a woman be treated by her husband?
A woman should be treated with respect, love and understanding. A husband should be treated in the same way.
To what extent should they be treated as adults?
to what extent should they be treated as adults
Unused fees on credit line should be operating expenses or interest expense?
Interest Expense
Where to post bad debt expense on income statement?
It should be posted under operating expense.
Should men and women be treated equally?
Yes, men and women should be treated fairly. Girls should be treated fairly as boys are.
