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Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:?
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Under this method, the annual charge for depreciation decreases from y...
Straight Line Method of Depreciation
The straight line method of depreciation is a commonly used method to calculate the depreciation of an asset over time. It is a simple and easy-to-use method that allocates an equal amount of depreciation each year, resulting in a straight line decline in the value of the asset over its useful life.
Advantages of Straight Line Method of Depreciation
1. Equal annual depreciation: Under this method, the annual charge for depreciation remains constant, resulting in equal annual depreciation charges. This makes it easier for businesses to plan their future expenses and budget accordingly.
2. Shared burden: The straight line method of depreciation ensures that the burden of depreciation is shared by the earlier years. This means that the benefits and burden of later years are shared equally, resulting in a fair allocation of costs over the life of the asset.
3. Never completely extinguished: Another advantage of this method is that the value of the asset can never be completely extinguished. This means that the asset will always have some residual value at the end of its useful life.
4. Uniform charge to revenue: The total charge to revenue is uniform under this method, even when the depreciation is high and repairs are negligible. As the repairs increase, the burden of depreciation gets lesser and lesser, resulting in a more balanced allocation of costs.
Conclusion
The straight line method of depreciation is a simple and easy-to-use method that ensures a fair allocation of costs over the life of an asset. While it may not be the most accurate method of depreciation, it is widely used by businesses due to its simplicity and ease of implementation.
The straight line method of depreciation is a commonly used method to calculate the depreciation of an asset over time. It is a simple and easy-to-use method that allocates an equal amount of depreciation each year, resulting in a straight line decline in the value of the asset over its useful life.
Advantages of Straight Line Method of Depreciation
1. Equal annual depreciation: Under this method, the annual charge for depreciation remains constant, resulting in equal annual depreciation charges. This makes it easier for businesses to plan their future expenses and budget accordingly.
2. Shared burden: The straight line method of depreciation ensures that the burden of depreciation is shared by the earlier years. This means that the benefits and burden of later years are shared equally, resulting in a fair allocation of costs over the life of the asset.
3. Never completely extinguished: Another advantage of this method is that the value of the asset can never be completely extinguished. This means that the asset will always have some residual value at the end of its useful life.
4. Uniform charge to revenue: The total charge to revenue is uniform under this method, even when the depreciation is high and repairs are negligible. As the repairs increase, the burden of depreciation gets lesser and lesser, resulting in a more balanced allocation of costs.
Conclusion
The straight line method of depreciation is a simple and easy-to-use method that ensures a fair allocation of costs over the life of an asset. While it may not be the most accurate method of depreciation, it is widely used by businesses due to its simplicity and ease of implementation.
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Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:?
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Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:? 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 Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:?.
Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:? 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 Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:?.
Solutions for Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:? defined & explained in the simplest way possible. Besides giving the explanation of
Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:?, a detailed solution for Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:? has been provided alongside types of Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:? theory, EduRev gives you an
ample number of questions to practice Under this method, the annual charge for depreciation decreases from year to year, so that the burden and benefits of later years are shared by the earlier years. Also, under this method, the value of asset can never be completely extinguished. The other advantage of this method is that the total charge to revenue is uniform when the depreciation is high, repairs are negligible; and as the repairs increase, the burden of depreciation gets lesser and lesser. This method of depreciation is:? tests, examples and also practice CA Foundation tests.
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