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Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
What is lost depreciation tax shield?
Lost depreciation tax means that loss of that tax amount which could be saved if there would be depreciation expenses in profit and loss account which will reduce the profit and hence the tax as well.
Is depreciation included as a cash flow in capital budgeting?
No depreciation is not included as depreciation is allocation of part of assets cost to income statement while in capital budgeting, full cost of asset is already included so if depreciation will also be included then there would be double counting of same asset.
Which method of depreciation would you use if you were to receive a bonus which is based on net profit?
which method of depreciation to use when bonus is received that is based on net profit
The depreciation method that would provide the highest reported net income in the early years of an asset's life would be?
The depreciation method that would provide the highest reported net income in the early years of an asset's life is the straight-line depreciation method. This method spreads the cost of the asset evenly over its useful life, resulting in lower depreciation expenses compared to accelerated methods like double declining balance or sum-of-the-years'-digits. Consequently, lower depreciation expenses lead to higher net income in the initial years.
Is depreciation a controllable cost?
No. Depreciation would be considered an uncontrollable cost because it is fixed
When would a company consider using accelerated depreciation?
There are many reasons that a company may consider using accelerated depreciation. The main reason being that by using accelerated depreciation, this would decrease their tax payments.
Can you have debit posting for accumulating depreciation?
Dear sir I want to ask some question like i wnat to do ACCA in UK but i dont know the criteria and procedure of that . some one told me ACCA is to much difficult field it would be difficult for you to complet it.
What is the depreciation on a used Mitsubishi car?
The depreciation on a used Mitsubishi car is different for every car. There is no given set limit on depreciation for a used Mitsubishi car. Dealers would know more.
What would a permanent accounts include accumulated depreciation?
yes
What is lost depreciation tax shield?
Lost depreciation tax means that loss of that tax amount which could be saved if there would be depreciation expenses in profit and loss account which will reduce the profit and hence the tax as well.
Is depreciation included as a cash flow in capital budgeting?
No depreciation is not included as depreciation is allocation of part of assets cost to income statement while in capital budgeting, full cost of asset is already included so if depreciation will also be included then there would be double counting of same asset.
Which method of depreciation would you use if you were to receive a bonus which is based on net profit?
which method of depreciation to use when bonus is received that is based on net profit
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.
The depreciation method that would provide the highest reported net income in the early years of an asset's life would be?
The depreciation method that would provide the highest reported net income in the early years of an asset's life is the straight-line depreciation method. This method spreads the cost of the asset evenly over its useful life, resulting in lower depreciation expenses compared to accelerated methods like double declining balance or sum-of-the-years'-digits. Consequently, lower depreciation expenses lead to higher net income in the initial years.
Can grounding your home eliminate static electricity?
Grounding your home can help dissipate static electricity but may not completely eliminate it. Other factors such as humidity levels and types of flooring can also impact the presence of static electricity in your home. Grounding can provide a path for static discharge to prevent buildup.
Is depreciation is an asset liability or equity?
no Depreciation Expense is an expense on your Statement of Comprehensive Income (Profit and Loss Account) The depreciation expense in the year would then reduce the value of the asset to which the depreciation relates. If you have any further questions on this topic, please do not hesitate to contact me at info@hodgsons.co.uk -------------------------------------------- With Regards to the Accounting Equation. Equity (NAV)= Assets- Liabilities Depreciation would be considered negative equity (as are all expenses) as they represent a decrease in the net asset value- or NAV- (not through transaction with the entities owner)
