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Main reason for prodiving depreciation is to allocate the part of cost of fixed assets to specific fiscal year to income statement as expense in which year fixed asset is used to generate revenue for business.
Wiki User
∙ 9y ago
Wiki User
∙ 9y agoMain reason for prodiving depreciation is to allocate the part of cost of fixed assets to specific fiscal year to income statement as expense in which year fixed asset is used to generate revenue for business.
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What are the reasons for charging depreciation on non current assets?
depreciation non current asseate
Can depreciation be charged on capital work in progress. Give reasons?
no depriciation is usually not charged on capital WIP
Give three reasons why depreciation may occur?
because it has to be in the time to have a business you should have this kind of proposal
Distinguish between depreciation policy and the concept of depreciation?
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.
What is the entry for accumulated depreciation?
Debit depreciation accountCredit accumulated depreciation
What are the reasons for charging depreciation on non current assets?
depreciation non current asseate
Can a company change the method of providing depreciation?
A company can change its method of providing Depreciation, (a) If it is necessitated by Statue or standard, or (b) If it would result in more Appropriate preparation or presentation of Financial Statement...
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.
Why depreciation expenses is referred to as a noncash expenses?
Because we are not incurring any cash when we are providing depreciation on fixed assets. Depreciation results in the reduction of fixed assets but doesn't involve any cash outflow. That is the reason it has to be added back to the net income while calculating cash flow statement.
Can depreciation be charged on capital work in progress. Give reasons?
no depriciation is usually not charged on capital WIP
Give three reasons why depreciation may occur?
because it has to be in the time to have a business you should have this kind of proposal
How are accumulated depreciation and depreciation related?
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.
How are accumulated depreciation and depreciation expensese related?
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.
Why accumulated depreciation exceed depreciation expense?
Depreciation expenses is for one specific fiscal year while accumulated depreciation is the sum of all depreciation expenses that’s why accumulated depreciation exceeds the depreciation if there is depreciation expense in prior year as well.
Distinguish between depreciation policy and the concept of depreciation?
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.
Which of the following is an advantage to providing reasons for the decision before providing significantly bad newsGroup of answer choices?
Emotions can be defused.
What is the entry for accumulated depreciation?
Debit depreciation accountCredit accumulated depreciation
