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A fixed asset is an item/asset that can or does generate income/revenue and its value does not flutuate in the short term.
A fixed cost is an expense that is repetative such as your real estate tax and utility bills
So the short answer is no. These are two different and opposite items
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Why fixed assets depreciate?
Fixed assets depreciate because through depreciation process cost of fixed asset charged to all those fiscal years in which that fixed asset is used.
What is a Depreciation Expense in accounting?
Depreciation expense is the process of reducing the cost of fixed asset during the fiscal life of a long term asset through annual fixed amount of expense charged to profit and loss account of business in which that long term asset is utilized in business to generate revenue.
What is the formula for equity method?
dEBIT COST AS AN ASSET DEBIT EARNINGS IN ASSET CREDIT DIVIDENDS RECD IN ASSET dEBIT COST AS AN ASSET DEBIT EARNINGS IN ASSET CREDIT DIVIDENDS RECD IN ASSET dEBIT COST AS AN ASSET DEBIT EARNINGS IN ASSET CREDIT DIVIDENDS RECD IN ASSET
Is fixed deposit an asset?
Yes. An Asset is something that has a value and can be sold/converted to cash.
Is carpet an asset?
It as a Fixed Asset if it is not for resale purposes and is used for more than 1 accounting period. But it might not be recorded in the B.S as a Fixed asset if the company feel that the figure is immaterial enough to be recorded. (It does not affect decisions of stakeholders).
Is depriciation a fixed cost?
Yes depreciation is a fixed cost of business which is an allocation of fixed asset cost over period of asset life.
How will you calculate cost of fixed assets?
Cost of fixed assets includes the cost of asset as well as all costs which are incurred to bring asset to working condition like carriage and installation cost as well.
Is the cost of a building a fixed asset?
Capital Expenditure.
When determining the value of a fixed Asset and a rebate was given do you reduce the value of the the fixed asset or book at a true cost?
If the company are using cost basis to value their assets then the rebate will reduce the cost.
Why fixed assets depreciate?
Fixed assets depreciate because through depreciation process cost of fixed asset charged to all those fiscal years in which that fixed asset is used.
What is depreciation and why is it included in the balance sheet?
Depreciation is allocation of fixed asset cost to income statement of useful life of asset that's why shown as reduction in fixed asset value.
What Types of fixed asset?
1)Tangible fixed asset 2)Intangible fixed asset 1)Tangible fixed asset 2)Intangible fixed asset
Is a desk a fixed asset or a current asset?
A fixed asset.
What is capital expenditure?
It is an expenditure in order to upgread or capitalize the fixed asset .this can be expressed either by extending the future expected life or by capitalizing the fixed asset cost.
Is the cost of the car fixed cost or variable cost?
Cost of car purchased for business purpose is fixed cost as this asset will be utilized for more than one fiscal year.
What is Gross block?
Gross Block=Cost of fixed assets(cost of accumalating the asset)+depreciation.
Do deprecations go on an income statement?
Yes depreciation is an expense and it is used to allocate the fixed portion of fixed asset cost to specific fiscal year in which that asset is used.
