what is depreciation?
Answers were Sorted based on User's Feedback
Answer / swathi
depreciation is a decreasing value.it is deducting in
annually.due to the scrap we are deducting the depreciation
value.when we know the actual value of the asset we should
deduct the depreciation according to the asset life
time. depreciation=asset value-scrap value
| Is This Answer Correct ? | 11 Yes | 2 No |
Answer / rock
Depreciation means change in the value of assets when the
time of wear and tear.
| Is This Answer Correct ? | 8 Yes | 1 No |
Answer / sharmistha chanda
Depreciatin is a expense which does not involve cash and it
reduce the value of the fixed assets.Like building or
machinery which we use for our office or business.Since it
is a non-cash expense it lowers the company's earnings and
increases the free cash flow.Depreciation is different from
the other expenses because you are not paying anyone.
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / siva rama krishna.n
Decreaseing in the value of fixed asset, the asset value
can be changed day to day that is called depreciation
| Is This Answer Correct ? | 6 Yes | 0 No |
Answer / manoj tirkey
Depreciation is an accounting methord by which the cost of
an assest is gradualy converted into expenses.
| Is This Answer Correct ? | 12 Yes | 7 No |
Answer / aakash
depreciation means a amount that company deduct every year
on thier assets assuming that that quality quantity & worth
of that assets reduce every year it can be calculated using
two method
1.straight method
2.written down value method
| Is This Answer Correct ? | 7 Yes | 2 No |
Answer / b.sathyanarayana
depreciation: gradual and permanent decrease in the value
of an asset is known an depreciation.
| Is This Answer Correct ? | 5 Yes | 1 No |
Depreciation is the reduction in the value of fixed assets
due to use, wear & tear & obsolescence(backdated).
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / raj
decrease in value of fixed assets due bear and tear during
working period
| Is This Answer Correct ? | 4 Yes | 1 No |
Data for two divisions of Alpha Biotech Ltd. Are given below. Analyze both divisions. Parameters Division X Division Y Rs. Rs. Capital Employed 50,00,000 50,00,000 Sales 30,00,000 28,00,000 Cost of Goods Sold 21,00,000 18,00,000 Profit Before Tax 9,00,000 10,00,000 Tax 2,70,000 3,00,000 Profit After Tax 6,30,000 7,00,000 Data for two divisions of Alpha Biotech Ltd. Are given below. Analyze both divisions. Parameters Division X Division Y Rs. Rs. Capital Employed 50,00,000 50,00,000 Sales 30,00,000 28,00,000 Cost of Goods Sold 21,00,000 18,00,000 Profit Before Tax 9,00,000 10,00,000 Tax 2,70,000 3,00,000 Profit After Tax 6,30,000 7,00,000 Data for two divisions of Alpha Biotech Ltd. Are given below. Analyze both divisions. Parameters Division X Division Y Rs. Rs. Capital Employed 50,00,000 50,00,000 Sales 30,00,000 28,00,000 Cost of Goods Sold 21,00,000 18,00,000 Profit Before Tax 9,00,000 10,00,000 Tax 2,70,000 3,00,000 Profit After Tax 6,30,000 7,00,000 Data for two divisions of Alpha Biotech Ltd. Are given below. Analyze both divisions. Parameters Division X Division Y Rs. Rs. Capital Employed 50,00,000 50,00,000 Sales 30,00,000 28,00,000 Cost of Goods Sold 21,00,000 18,00,000 Profit Before Tax 9,00,000 10,00,000 Tax 2,70,000 3,00,000 Profit After Tax 6,30,000 7,00,000
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