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
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.
EBITDA Earnings Before Interest Tax Depreciation and Amoortisation Also Revenue minus costs.
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.
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.
Supplementary cost is the general cost of an undertaking as a whole including administration, interest, taxes, general maintenance, depreciation, and obsolescence.
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.
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.
Debit depreciation accountCredit accumulated depreciation
Net block is the gross block less accumulated depreciation on assets. Net block is actually what the asset are worth to the company
means loses value over time. Example-your car. it is worth less & less the older it gets.
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
Pro-rata depreciation is used when an asset is purchased in the middle of an accouting period therefore the straight line method and reducing balnce methods can not be used. The pro rata method lets you define howw long the asswet has been in ownership by the business for.