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When the economy is shrinking, the dollar suffers. The dollar will lose its value and it will take more less foreign currency to equal a dollar.

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11y ago

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When would a company consider using accelerated depreciation?

There are many reasons that a company may consider using accelerated depreciation. The main reason being that by using accelerated depreciation, this would decrease their tax payments.


What do you think when the amount of depreciation to be charged is not a whole number?

There is no reason for it to be a whole number!


What can the RBI do to curb the depreciation of the Indian Rupee?

They can sell US Dollars. Last time around when there was such a problem, the RBI sold US dollars worth nearly 18 billion. This time around, they would have to cough up an even larger number to prevent the depreciation. Most importantly, this will be only temporary. The RBI selling dollars alone cannot fight the global dynamic risk and hence will not have any long term effect on the exchange rate. That is exactly why the RBI isn't doing anything explicit to protect the rupee value.


Why were Continental dollars worth so little?

The Continental Cngress was unable to prevent deep depreciation of its paper currency.


Can depreciation on a Fixed Asset be carried as a contra-asset on its own line on the balance sheet or does it have to be deducted from the Fixed Asset?

Depreciation of a Fixed Asset is always carried on the Balance Sheet in the Accumulated Depreciation Account (contra-asset). It is never deducted from the Fixed Asset.One reason for the Accumulated Depreciation account is that eventually, individual assets will be fully depreciated and their net values will be zero. If the depreciation were deducted from the asset, it would "fall off" the balance sheet. The accumulated depreciation account allows the assets to remain at book value in the asset account to maintain their visual presence on the books.The depreciation entry debits depreciation expense and credits accumulated depreciation.


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.


Why is it important for a hospital to pay attention to depreciation more than a computer software company?

It is more important for a hospital to pay attention to depreciation than a computer software company for a couple of reasons. The first reason is patient care. The second reason a hospital needs to pay attention to depreciation is the insurance company payment to the hospital is oftentimes much less than a private pay.


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 depreciation expenses is referred to as a noncash expenses?

Because we are not incurring any cash when we are providing depreciation on fixed assets. Depreciation results in the reduction of fixed assets but doesn't involve any cash outflow. That is the reason it has to be added back to the net income while calculating cash flow statement.


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.


Are Jamaican dollars different from US dollars?

Yes. The various dollars used outside the US are not the same as US dollars.


How much is L200.00 L400.00 to us dollars?

20 us dollars and 40 us dollars.