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What is unabsorbed depreciation?
The amount of Depreciation allowance of any year which cannot be absorbed due to nonavailability of profits or gains chargeable for that year of such profits or gains being less than the allowance then the allowance or part of the allowance to which effect has not been given is treated as unabsorbed depreciation.
What is provision of depreciation?
Provision of depreciation is allowance account in which every year fixed amount is put to charged against actual depreciation so that planned income statement can be prepared and profit remains smooth.
What part of balance sheet is allowance for doubtful accounts reported?
The allowance for doubtful accounts is a reduction to the accounts receivable. This is a contra account, similar to accumulated depreciation.
Is Residual value a incorporated in the initial calculations for double-declining-balance depreciation?
true!
What is the formula of average net profit?
It is the Sum of the profit of each year minus the depreciation (minus the initial Investment)
What is unabsorbed depreciation?
The amount of Depreciation allowance of any year which cannot be absorbed due to nonavailability of profits or gains chargeable for that year of such profits or gains being less than the allowance then the allowance or part of the allowance to which effect has not been given is treated as unabsorbed depreciation.
What is provision of depreciation?
Provision of depreciation is allowance account in which every year fixed amount is put to charged against actual depreciation so that planned income statement can be prepared and profit remains smooth.
What part of balance sheet is allowance for doubtful accounts reported?
The allowance for doubtful accounts is a reduction to the accounts receivable. This is a contra account, similar to accumulated depreciation.
Do you lose your down payment when you lease a car?
Yes, It covers initial depreciation.
Is Residual value a incorporated in the initial calculations for double-declining-balance depreciation?
true!
How much is the initial uniform allowance for officers in the army?
Effective December 6, 2000, this allowance is not payable if the officer has received an initial uniform allowance of more than $400 during the current tour of active duty, or within a period of 2 years before entering on that tour.
What is the formula of average net profit?
It is the Sum of the profit of each year minus the depreciation (minus the initial Investment)
Is Allowance For Doubtful Accounts and Accumulated Depreciation Similar?
Yes.... and no. I guess it depends how you are meaning this, specifically. They are both "contra-asset" accounts, however, they are for different things. Allowance for Doubtful Accounts ("ADA") is the estimated amount of your accounts receivable (the money that people owe you) that you suspect will not be paid. Accumulated Depreciation is the total depreciation on your asset (building, equipment, etc. -- NOTE: Land does NOT depreciate.) since you record the asset at its historical cost (the amount you paid for it). So, while both are contra-asset accounts, they have very different uses behind them.
How do you calculate depreciation using Written Down Value Method?
Rate of depreciation = 1-(salvage value/Cost of asset)^(1/n) n-> useful life of the asset. This rate of depreciation is charged on the net book value of the asset of each year.! The depreciation rates are high at the start and low towards the end of useful life of the asset
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.
