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What is the systematic allocation of a fixed assets cost to expense?
Wiki User
∙ 15y ago
Depreciation.
Wiki User
∙ 15y ago
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What is non current assets to total assets ratio?
Fixed assets to total assets ratio describe about the percentage or number of time fixed assets are of total assets. It helps the management to find out that either they are maintaining proper fixed assets and current assets ratio or there may be any changes required in the ratio which is to be maintained because if they maintain high ratio it will affect the depreciation expense and ultimately net income as well.
Why should accumulated depreciation be treated as expense?
It is treated as expense because it uses to allocate the related assets cost portion to profit and loss account due to usage of fixed assets for revenue generation in fiscal year.
Is administrative expense a fixed cost or variable?
Fixed
What are the reasons for providing depreciation?
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.
Is gross block current assets or fixed assets?
fixed assets
Fixed assets reduces profits in balance sheet?
depreciation of fixed assets reduces the profit as depreciation is also an expense.
Are repairs on a vehicle considered a fixed asset?
If repair improves the performance of fixed assets and massive improvement then it is part of fixed assets otherwise revenue expense.
What are the suitable account expense name for furniture's and fixtures?
fixed assets
Why is it mandatory that depreciation expense be included in the P and L?
Depreciation expense is included in the P&L (Profit and Loss) statement because it represents the allocation of an asset's cost over its useful life. By including depreciation expense, the P&L statement reflects the true operational costs associated with the use of assets in generating revenue. It helps provide an accurate representation of the profitability and financial performance of a company over a period of time.
What is the formula to find capital expenditure in the financial statements?
Beg. Net Fixed Assets - End. Net fixed Assets - Depreciation Expense= CAPEX
What is depreciation of fixed assets?
Depreciation is the method of allocation of part of cost to all fiscal years to which fixed asset is used for revenue generation to income statement
Accounting entry for capitalization of inventory as fixed assets?
Debit Depreciation Expense Credit Accumulated Depreciation
The cost of fixed assets recognized as being consumed during a fiscal period is recorded as?
depreciation expense
What is non current assets to total assets ratio?
Fixed assets to total assets ratio describe about the percentage or number of time fixed assets are of total assets. It helps the management to find out that either they are maintaining proper fixed assets and current assets ratio or there may be any changes required in the ratio which is to be maintained because if they maintain high ratio it will affect the depreciation expense and ultimately net income as well.
What is Non Current Assets to Total Assets?
Fixed assets to total assets ratio describe about the percentage or number of time fixed assets are of total assets. It helps the management to find out that either they are maintaining proper fixed assets and current assets ratio or there may be any changes required in the ratio which is to be maintained because if they maintain high ratio it will affect the depreciation expense and ultimately net income as well.
Why should accumulated depreciation be treated as expense?
It is treated as expense because it uses to allocate the related assets cost portion to profit and loss account due to usage of fixed assets for revenue generation in fiscal year.
Is administrative expense a fixed cost or variable?
Fixed
