Example of accumulated depreciation account, Accounting Basics

Assignment Help:

Q. Example of accumulated depreciation account?

The accumulated depreciation account doesn't represent cash that is being set aside to change the worn out asset. The un-depreciated cost of the asset is a debit balance in the asset account (original cost) minus the credit balance in the accumulated depreciation contra account. Accountants as well refer to an asset's cost less accumulated depreciation as the book value (or net book value) of the asset. Therefore book value is the cost not yet allocated to an expense. In the previous instance the book value of the equipment after the first month is

Cost USD 40000

Less: Accumulated depreciation 750

Book value (or cost not yet allocated to as an expense) 39250


Related Discussions:- Example of accumulated depreciation account

Departures from cost basis of inventory measurement, Q. Departures from cos...

Q. Departures from cost basis of inventory measurement? In general companies must use historical cost to value inventories and cost of goods sold. But some circumstances justif

Show recording changes in dividends, Q. Show Recording changes in dividends...

Q. Show Recording changes in dividends? Recording changes in dividends ever since dividends decrease retained earnings increases appear on the left side of the Dividends accoun

Branch accounting, Mohan brothers invoiced goods to their branch at cost pl...

Mohan brothers invoiced goods to their branch at cost plus 33.33%. All the cash collected by branch is banked on the same day to the credit of head office. All expenses are paid by

Approving an invoice for payment, What steps would you take before approvin...

What steps would you take before approving an invoice for payment? Ans) Following steps should be taken.. ? Certify the invoice once it is matched for checking any holds..

Explain about accounting period, Q. Explain about Accounting period? As...

Q. Explain about Accounting period? As those interested in the activities of business need timely information companies must prepare financial statements periodically. To organ

Financial statements in european countries, Q. Financial statements in Euro...

Q. Financial statements in European countries? In a few European countries the financial statements contain secret reserves. These secret reserves occur from a company not repo

Explain about the petty cash, Explain about the Petty Cash Petty Cash ...

Explain about the Petty Cash Petty Cash It is a small amount of money which is kept in the office for making small expenditures. ($10, $25, $50, etc.) Business will conclude

What are the break-even levels of ebit, John is considering the best capita...

John is considering the best capital structure for his firm. Suppose there are two capital structures for him to choose from. Structure A would have 7,000 shares of stock and $160,

Limitations of ratio analysis, Limitations of Ratio Analysis :  In spit...

Limitations of Ratio Analysis :  In spite of the a variety of uses of ratio analysis, it go through from certain limitations, some of which are as under; 1.    Limited use

Define an accounting system, Q. Define an accounting system? Effects fr...

Q. Define an accounting system? Effects from a recent survey of 1400 chief financial officers (CFOs) indicate that tomorrow's accounting professionals will be called upon to br

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd