0
Accumulated depreciation is contra for related assets shows in balance sheet to show the reduction in actual cost of asset
Example:
if 1 asset purchased for 100 for 10 years then per year depreciation is 10 with straight line depreciation so after ten years actual cost will be nill while accumulated depreciation will be 100.
What else can I help you with?
Depreciation is called as notional cost why and explain?
Depreciation is called a notional cost because it cannot be measured in real terms.
How does depreciation generate cash flows for a company?
That's a difficult issue to explain on a few words.
Explain briefly why you think that the calculation of depreciation is based on estimates?
The calculation of depreciation is based on estimates because it involves predicting the useful life and residual value of an asset, both of which can vary significantly based on usage, maintenance, and market conditions. These estimates inherently contain uncertainties, as they rely on judgment and assumptions about future events. Additionally, different accounting methods (e.g., straight-line or declining balance) can yield varying depreciation amounts, further emphasizing the subjective nature of these calculations. Consequently, the estimation process reflects the complexities involved in assessing an asset's value over time.
Explain why the book value of an asset is not necessarily the market value of that asset?
It is not same as market value because book value of assets derives from its cost and deduction of depreciation, while market value varies due to market conditions. That's why it may not be same.
'Interest during construction' should always be included in the cash flow analysis since it represents a true cost. Agree or disagree explain?
As working capital the IDC should be included in Investment plus it is contracted during the construction then it should be condidered as an investment /asset subject to depreciation
Depreciation is called as notional cost why and explain?
Depreciation is called a notional cost because it cannot be measured in real terms.
Why organisations need to recognize depreciation expense in the income statement?
Explain the concept of depreciation and why organisations need to recognise deprecations expense in the Income Statement.
How does depreciation generate cash flows for a company?
That's a difficult issue to explain on a few words.
Can you explain how double declining depreciation works in accounting?
Double declining depreciation is a method used in accounting to calculate the depreciation expense of an asset. It involves depreciating the asset at a faster rate in the early years of its useful life and then slowing down the depreciation in later years. This method results in higher depreciation expenses in the beginning, reflecting the asset's higher usage and wear and tear, and lower expenses towards the end of its useful life.
Can you explain what "credited to your account" means?
"Credited to your account" means that a certain amount of money or value has been added to your account, increasing the balance or available funds.
What are conditional connectives. Explain with an example?
What are conditional connectives? Explain use of conditional connectives with an example
What is bcnf explain with example?
define BCNF. Explain with appropriate example
Can you explain recoverable depreciation after a fire?
I haven't any idea about the recoverability of the fire but I know a site named halon.us which buy damaged extnguishers from other.
Explain with help of an an example how FAT different from inode?
explain with help of an example, how FAT is different from inode.
What are the benefits of measures of central tendency Explain with an example?
"What are the benefits of measures of central tendency? Explain with an example
Can you explain with an example?
yes
Explain listing process with suitable example and Diagram?
1 Explain listing process with suitable example & Diagram
