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Depreciation in ROI measurement refers to the reduction in the value of an asset over time due to wear and tear, obsolescence, or age. In calculating ROI, depreciation is accounted for as an expense, which reduces the net income generated by the asset. This adjustment helps provide a more accurate picture of the investment's profitability, reflecting the true economic benefit after considering the asset's diminishing value. Properly factoring in depreciation ensures that ROI calculations are aligned with the actual performance and cost of the investment.
What else can I help you with?
Cost less accumulated depreciation is a measurement of the current value of an asset such as equipment or a building?
buliding
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 is the difference between depreciation and accumulated depreciation?
Depreciation is for a particular year (say for Year 3). Accumulated depreciation is the aggregate of depreciation from the beginning (say from Year 1 to Year 3)
What is the journal entry accumulated depreciation?
[Debit] Depreciation account [Credit] Accumulated depreciation
Cost less accumulated depreciation is a measurement of the current value of an asset such as equipment or a building?
buliding
What is the homophone for measurement?
The homophone for "measurement" is "meant." While "measurement" refers to the process of determining the size, length, or amount of something, "meant" is the past tense of "mean," indicating intention or significance.
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.
What means by?
I think you meant to ask what is depreciation. This is the value given to the wearing out of assets in accounting term. When you buy an asset like a Car the value of it will always go down as you use it. In Accounting this is called depreciation and you have to provide for it when doing the accounts.
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.
Are a watt and a joult equivelent units?
no watt is a measurement of power where as if you meant joule that is a measurement of energy which are not the same thing
What means by deprecations?
I think you meant to ask what is depreciation. This is the value given to the wearing out of assets in accounting term. When you buy an asset like a Car the value of it will always go down as you use it. In Accounting this is called depreciation and you have to provide for it when doing the accounts.
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.
What is meant by the terms margin and turnover in ROI calculations?
Margin and turnover in ROI calculations: Margin: In ROI calculation margin is the ratio of net operating income to total sales. Turnover: In ROI calculation turnover means the ratio of total sales to average operating assets. Operating assets include cash, A/R, inventory, PP&E, and so on. Land held for future use, leases, and investments do not count.
What is the entry for accumulated depreciation?
Debit depreciation accountCredit accumulated depreciation
What is meant by significant figures in measurement?
In any measurement, the accurately known digits and the first doubtful digits are called significant figures.
