CA Foundation Exam  >  CA Foundation Questions  >  what is the depreciation Related: Depriciati... Start Learning for Free
what is the depreciation
?
Verified Answer
what is the depreciation Related: Depriciation Accounting, Fundamenta...
Depreciation:
In accounting terms, depreciation is defined as the reduction of recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible.
An example of fixed assets are buildings, furniture, office equipment, machinery etc.. A land is the only exception which cannot be depreciated as the value of land appreciates with time.
Depreciation allows a portion of the cost of a fixed asset to the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue generation transaction.
This question is part of UPSC exam. View all CA Foundation courses
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

what is the depreciation Related: Depriciation Accounting, Fundamentals of Accounting?
Question Description
what is the depreciation Related: Depriciation Accounting, Fundamentals of Accounting? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about what is the depreciation Related: Depriciation Accounting, Fundamentals of Accounting? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for what is the depreciation Related: Depriciation Accounting, Fundamentals of Accounting?.
Solutions for what is the depreciation Related: Depriciation Accounting, Fundamentals of Accounting? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of what is the depreciation Related: Depriciation Accounting, Fundamentals of Accounting? defined & explained in the simplest way possible. Besides giving the explanation of what is the depreciation Related: Depriciation Accounting, Fundamentals of Accounting?, a detailed solution for what is the depreciation Related: Depriciation Accounting, Fundamentals of Accounting? has been provided alongside types of what is the depreciation Related: Depriciation Accounting, Fundamentals of Accounting? theory, EduRev gives you an ample number of questions to practice what is the depreciation Related: Depriciation Accounting, Fundamentals of Accounting? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev