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Depreciation on plant and assets

Anonymous

∙ 10y ago

Updated: 11/6/2022

Plant and assets are those items which is usable in business for more than one fiscal year to generate revenue for business that's why depreciation is charged to allocate the specific portion of cost related to one fiscal year through income statement.

Wiki User

∙ 10y ago

What else can I help you with?

The process of allocating the cost of plant assets to expense over their useful lives is called-?

Depreciation

Does depreciation is charged on intangible assets?

Depreciation is charged to tangible assets while amortization is used to charge intangible assets.

What is the different between the cost of depreciation of a asset and its related accumulated depreciation?

Cost of depreciation assets and accumulated depreciation is same as accumulated depreciaton calculates how much depreciation is charged till date while remaining is current book value of assets.

Fixed assets reduces profits in balance sheet?

depreciation of fixed assets reduces the profit as depreciation is also an expense.

Depreciation is provided on?

on Fixed Assets

Intangible assets are depreciated or not?

Intangible assets are subject to devaluation not depreciation.

Why is depreciation of plant and equipment an expense in the income statement?

Depreciation of plant and equipment is considered an expense because it represents the allocation of the cost of these assets over their useful lives. As assets are used in the production of goods or services, their value decreases over time due to wear and tear, obsolescence, or usage. Recognizing depreciation as an expense in the income statement helps to reflect the decrease in the value of these assets and ensures a more accurate representation of the company's profitability.

In accountancy what does depreciation refer to?

In accountancy depreciation refers to two different aspects: 1. the decrease in value of assets and 2. the allocation of the cost of assets to periods in which the assets are used.

How do you record depreciation in a journal entry?

[Debit] Depreciation Account [Credit] Assets Account

What are the reasons for charging depreciation on non current assets?

depreciation non current asseate

What assets are not subject to amortization depreciation depletion?

Land is not subject to depreciation, depletion, or amortization.

Is depreciation charged on current assets or not?

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