Depreciation in context with Income Statement and Balance sheet
Jennifer edwards Depreciation is one of the basic accounting terms that is applied to the degree of wear and tear that happens to a firm’s assets. With the help of depreciation accountants…
Diminishing Balance Method of Depreciation
Abida Rehman Diminishing Balance Method of Depreciation: Learning Objectives: Define, explain and give example of the diminishing balance method/written down value method/reducing installment method? What are advantages and disadvantages of diminishing balance…
Need for Depreciation
Sidra Farid Need for Depreciation: Learning Objectives: Why does the need for calculating and charging depreciation arise. The Need for depreciation arises for the following reasons: Ascertainment of True Profit or Loss:…
Difference Between Depreciation and Fluctuation
Difference Between Depreciation and Fluctuation: Learning Objectives: What is the difference between depreciation and fluctuation?. Depreciation of asset and fluctuation in its market value are not the same. For example,…
Annuity Method of Depreciation
Annuity Method of Depreciation: Learning Objectives: What is annuity method of depreciation? Where is it adopted? According to this method, the purchase of the asset concerned is considered an investment…
Depreciation of Various Assets
Depreciation of Various Assets: Learning Objectives: How should the depreciation on various assets be calculated?. We discuss below the problem of depreciating some given assets. Freehold Land and Building: It…
Depreciation, Depletion and Amortization
Rubab Ali Depreciation, Depletion and Amortization: Learning Objectives: What is the difference among depreciation, depletion, and amortization. Depreciation: The term depreciation is used with reference to tangible fixed assets because the permanent…
Depletion Method of Depreciation
Depletion Method of Depreciation: Learning Objectives: What is depletion method of depreciation? Explain with example. Depletion method of depreciation is especially suited to mines, quarries, sand pits, etc. According to…
Accounting For Depreciation
Accounting For Depreciation Learning Objectives: Define and explain the term "depreciation". Why does depreciation calculated and charged? What are the different methods for providing depreciation? Definition and Explanation of Depreciation:…
Fixed Installment Method or Straight Line Method or Original Cost Method of Depreciation
Sana Ahmed Fixed Installment Method or Straight Line Method or Original Cost Method of Depreciation: Learning Objectives: Define, explain and give example of fixed installment or straight line or original cost method.…
Basic Factors of Determination of Depreciation
Basic Factors of Determination of Depreciation: Learning Objectives: What are the basic factors of depreciation determination? For calculation depreciation the basic factors are: The original cost of the asset. The…
Definition, Explanation and Characteristics of “Depreciation” or “Accounting Depreciation
Definition, Explanation and Characteristics of "Depreciation" or "Accounting Depreciation": Learning Objectives: Define and explain the terms "depreciation" or "accounting depreciation". The value of assets gradually reduces on account of use.…