0
What factors must be considered in determining the period of depreciation charged?
Wiki User
∙ 9y ago
In determining the period of depreciation to be charged, one must consider the cost of the asset and its estimated salvage value. The usual life of the asset must also be considered together with its obsolescence.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
What factors do you take into account in determining the amount of depreciation?
You need to consider the useful life if the asset. The risidual income you expect to get from selling it on. And whether you are using straight line or reducing balance.
What is depreciation in terms of accounts?
Depreciation is an expense which is charged on fixed assets of a company. Over time, fixed assets of a company lose their value due to use, wear and tear, and natural causes. Since the exact value of fixed assets cannot be determined, depreciation is charged on them to get their estimated value. Depreciation is listed in the income statement of a company under the head "Expenses". It is also listed in the balance sheet as accumulated depreciation.
What is the normal balance of depreciation expense accounts?
The answer to this question depends on the value of the depreciable assets the company has, the useful lives of the assets, and the depreciation methods used. When a firm owns many depreciable assets, depreciation expense will be higher. The longer the useful lives of the assets, the less the depreciation expense will be per period because the expense is being allocated over a longer period of time. The depreciation method also has a huge impact. If the straight-line method is used, then the expense will be constant each period. If another method such as double-declining balance is used, higher depreciation will occur during the beginning of the life of the asset. All of these factors affect the balance of the depreciation expense account.
What factors determine the need for cash in the firm's operation?
Operating Cash Flow is calculated using adjusting net income for items (depreciation, changes to accounts receivable, and changes to inventory).
What factors should be considered when choosing a credit card processing service?
The first factor to consider is the service's reputation and legitimacy. Then one needs to think about things like whether the service encrypts information, what the customer service hours are and the fees charged for the volume of credit card transactions expected.
What factors are considered when determining a target market?
A number of factors should be considered when determining a target market. Gender, age, income, profession, location, and family composition are factors to consider.
What factors are considered in determining whether a particular act is subject to Respondeat Superior?
What factors are considered in determining whether a particular act is subject to Respondeat Superior?
What factors are considered for determining promotion mix for any given product?
the factors considered when selecting a promotion mix
What factors can be considered a determinant to consumer demand?
Supply and Price are the determining factors for Demand.
What factors should be considered in determining safe speed in a boat?
the state of visibility
What is fixed depreciation?
Unavoidable depreciation factors like age of the object.
What factors are considered when determining a country's rate of natural increase?
Birth, and in-migration.-Dae*
What factors do you take into account in determining the amount of depreciation?
You need to consider the useful life if the asset. The risidual income you expect to get from selling it on. And whether you are using straight line or reducing balance.
According to navigation rules what factors should be considered in determining a safe speed?
The state of visibility
Can bankruptcy prevent you getting homeowners insurance?
Maybe. Many factors are considered by insurance company underwriters in determining whether or not to accept a risk and the price (premium) to be charged. Many insurers do utilize credit reports to help assess and price a risk.//
Generally what factors are considered when determining a quote for transit insurance?
Major factors that insurance companies consider when determining a transit insurance quote are the following. What you drive, how old you are, how often and where do you drive, have you been in an accident before and which sex are you.
Factors determining office location office location?
factors determining office location
