depreciation non current asseate
No
Depreciation is always charged on fixed assets and it does not has any relation with individual or company status.
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.
The Reasons why Depreciation are Charged are as follows:It help as a replacement of assets.It reduces tax paid on profit.It follows the marching concept which states that, the cost of an assets are spread over its useful life.
Depreciation is charged to tangible assets while amortization is used to charge intangible assets.
No
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.
Depreciation is always charged on fixed assets and it does not has any relation with individual or company status.
Non current assets decrease with depreciation which is due to wear and tear due to usage of that assets in revenue generation.
Depreciation on Fixed Asset (Furniture, Building) are considered as Non-Current Assets
Depreciation is the method of allocating the amount of fixed asset to the fiscal year in which that asset utilized and it is only applicable to fixed assets because current assets are fully utilizable in current year that's why full amount of current assets are charged to income statement.
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.
The Reasons why Depreciation are Charged are as follows:It help as a replacement of assets.It reduces tax paid on profit.It follows the marching concept which states that, the cost of an assets are spread over its useful life.
Depreciation is charged to tangible assets while amortization is used to charge intangible assets.
In accounting, depreciation is an allocation of a previous expenditure, while in economics depreciation represents a decline in current value.
the expired cost of fixed plant assets such as land, building, equipment, furniture and fixtures and automobile etc.., after a year is known as depreciation. it means that if you depreciate the value of any fixed assets you will be able to estimate its life for the future use..it can help you to estimate the total revenue earned by using that assets.
Accumulated depreciation is the contra account in balance sheet to reduce the price of assets from balance sheet and depreciation is the expense account which shows the current year's expense in income statement, so depreciation account is closed in accumulated depreciation account to show the overall reduction in the price of assets for more than one fiscal year.