What is Fixed Assets? How many depreciation types are
there? How to apply depreciation on assets in a year?
- 2 Answers
- 5272 Views
- Cognizant, I also Faced
- E-Mail Answers
Answer Posted / hamdan
Fixed assets, also known as a non-current asset or as property, plant, and equipment (PP&E), is a term used in accounting for assets and property which cannot easily be converted into cash. This can be compared with current assets such as cash or bank accounts, which are described as liquid assets. In most cases, only tangible assets are referred to as fixed.
Depreciaton Types:
1.Straight Line method.
2.Reducing Balance Method/Written Down Value Method.
Depreciation is Calculated as:
The straight line depreciation method divides the cost by the life.
SL = Cost / Life
Example: A desk is purchased for $487.65. The expected life is 5 years. Calculate the annual depreciation as follows:
487.65 / 5 = 97.53
Each year for 5 years $97.53 would be expensed.
| Is This Answer Correct ? | 18 Yes | 0 No |
Post New Answer View All Answers
How can you made payment when bill come from vendor, what is the bills have you check.
Can you differentiate accounting and auditing?
What is journal entry for salary paid less deductions (e.g. fines for breaking a company's property)?
What information do you require before you approve an invoice for payment?
There are two Business areas 1100 and 1200. I need to pick 1200 b.areaonly While enter the transaction? could any one please post the answer for this.
Horizontal balance sheet versus Vertical balance sheet
What is the difference between lc and bg(letter of credit
Received Invoice from Tvs Co. against purchase of 15 pcs of Mouse @ 750 excluding VAT 4%, Pass journal entry in the necessary books of accounts?
A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from stock Rs 10000. He pays expenses amounting to Rs 1000. V incurs further expenses on carriage Rs 1000. He receives cash for sales Rs 15000. He also takes over goods to the value of Rs 2000. The profit on joint venture is 7 (a) Rs.3000 (b) Rs.5000 (c) Rs.6000 (d) Rs.3500
Explain have you ever heard about tds, what it is?
Hey can any body tell me..What are negative assets?
can we change date in tally.erp s/w in educational mode ?
Explain me the difference between accounting and auditing?
Tell me do you possess any knowledge about accounting standards?
What is accounting chart of accounts?
