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Is depreciation on fixed asset a capital expenditure
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Answer / dharmesh sati
No Depreciation will reduce your Profit so it is not
Capital Expediture
Capital Expediture is that from which Company generat some
kind of new asserts or for increasing the capicity of
available asserts.
| Is This Answer Correct ? | 7 Yes | 2 No |
Answer / h.r. sreepada bhagi
Capital Expenditure results in creation/acquisition of Fixed
Asset. Depreciation is the process of reducing the value of
fixed assets in the books over the period of its life (in
any prescribed method and rates prescribed by Companies Act
or any other applicable law) by charging to the profit &
Loss A/c.
Its debited to the Profit & Loss A/c like any other Revenue
Expenditure.
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / rajkumar
NO.
DEPRECIATION AMOUNT WILL BE LESS IN PROFIT
| Is This Answer Correct ? | 8 Yes | 4 No |
Answer / shi
NO
Depreciation has no ties with Capital/Revenue
Expenditures, but simply it Reflects the Actual
BOOK VALUE of a certain Fixed Asset. A Depreciation
Schedule is prepared for this Asset, and its Debited
to its expense a/c either monthly or yearly.
| Is This Answer Correct ? | 2 Yes | 2 No |
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