Loading the lesson
Loading the lesson
Search AllRounder.ai
Search the courses, subjects, tracks, games and features, or jump straight to a page.
Search the courses, subjects, tracks, games and features, or jump straight to a page.
2 cards from this section. Quick, good the night before a test.
Define depreciation.
Think about the reasons an asset might lose value.
Explain the Straight-Line Method of depreciation.
How does this method calculate annual expense?
What is depreciation?
Consider what typically happens to an asset's worth as it ages.
True or False: Depreciation is a method to increase taxable income.
Think about how businesses report their expenses.
A company purchased machinery for ₹200,000 with a salvage value of ₹20,000. If they decide to use the Written Down Value Method at 25%, calculate the depreciation for the first three years.
Keep calculating based on the remaining book value each year.
An asset originally costing ₹150,000 has a 10-year useful life and a salvage value of ₹10,000. If it is depreciated using the Sum of the Years' Digits method, calculate the depreciation for the first year.
First, calculate the total years increased and remember to apply the fraction to the depreciable amount.
1 more question in this section. Enroll free to practise them all.
Enroll free