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de·pre·ci·a·tion
1. A decrease or loss in value, as because of age, wear, or market conditions.
2. Accounting. An allowance made for a loss in value of property.
3. Reduction in the purchasing value of money.
4. An instance of disparaging or belittlement.
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Viper1
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How would you define depreciation?
For anything other than land, which is not allocated, the reclassification of tangible assets is called depreciation (for anything other than natural resources) or depletion (for natural resources) expense.
Gross profit margin define?
EBITDA Earnings Before Interest Tax Depreciation and Amoortisation Also Revenue minus costs.
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.
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.
Define the term 'supplementary cost'?
Supplementary cost is the general cost of an undertaking as a whole including administration, interest, taxes, general maintenance, depreciation, and obsolescence.
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.
Distinguish between depreciation policy and the concept of depreciation?
Depreciation policy is management thing that what depreciation method to use and how much depreciation to charge to each asset. Depreciation concepts are concepts which govern the depreciation process which management cannot change they are universal rules to follow depreciation that how straight line depreciation work etc.
What is the entry for accumulated depreciation?
Debit depreciation accountCredit accumulated depreciation
Define gross block and net block?
Net block is the gross block less accumulated depreciation on assets. Net block is actually what the asset are worth to the company
Define depreciation and give an example of expenditure it applies too?
means loses value over time. Example-your car. it is worth less & less the older it gets.
Define depreciation Why it is calculated and what are the different approaches to calculate the depreciation?
AnswerDepreciation measures the decline in the useful economic value of an asset due to use or obsolescence. It can be calculated using the straight line method, sum-of-digits method, double-declining method, unit-of-production method.*****ShaeBest
What is the difference between depreciation and accumulated depreciation?
Depreciation is for a particular year (say for Year 3). Accumulated depreciation is the aggregate of depreciation from the beginning (say from Year 1 to Year 3)
