SSC CGL Exam  >  SSC CGL Videos  >  SSC CGL Tier 2 - Study Material, Online Tests, Previous Year  >  Additional Questions on Depreciation

Additional Questions on Depreciation Video Lecture | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year

1365 videos|1312 docs|1010 tests

Top Courses for SSC CGL

FAQs on Additional Questions on Depreciation Video Lecture - SSC CGL Tier 2 - Study Material, Online Tests, Previous Year

1. What is depreciation?
Ans. Depreciation is a method used in accounting to allocate the cost of an asset over its useful life. It represents the decrease in an asset's value due to wear and tear, obsolescence, or other factors.
2. How is depreciation calculated?
Ans. Depreciation can be calculated using different methods such as straight-line depreciation, declining balance depreciation, or units of production depreciation. The most commonly used method is the straight-line method, which divides the asset's cost by its useful life to determine the annual depreciation expense.
3. What is the impact of depreciation on financial statements?
Ans. Depreciation affects the financial statements by reducing the reported value of assets on the balance sheet and increasing expenses on the income statement. This reduction in asset value and increase in expenses can lower the company's net income and overall profitability.
4. Can depreciation be reversed?
Ans. No, depreciation cannot be reversed. Once an asset's value has been depreciated, it cannot be adjusted back to its original value. However, if an asset's value has been previously overstated, it can be adjusted downwards through impairment charges.
5. Can depreciation be claimed as a tax deduction?
Ans. Yes, depreciation can be claimed as a tax deduction. The tax laws allow businesses to deduct a portion of the asset's cost as depreciation expense each year, which reduces the taxable income and ultimately lowers the tax liability. However, there are specific rules and guidelines set by the tax authorities regarding the calculation and deduction of depreciation for tax purposes.
1365 videos|1312 docs|1010 tests
Explore Courses for SSC CGL exam
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
Related Searches

video lectures

,

pdf

,

Previous Year

,

Summary

,

study material

,

ppt

,

Online Tests

,

Additional Questions on Depreciation Video Lecture | SSC CGL Tier 2 - Study Material

,

Additional Questions on Depreciation Video Lecture | SSC CGL Tier 2 - Study Material

,

Previous Year

,

Semester Notes

,

mock tests for examination

,

shortcuts and tricks

,

Additional Questions on Depreciation Video Lecture | SSC CGL Tier 2 - Study Material

,

Previous Year Questions with Solutions

,

Exam

,

Viva Questions

,

Previous Year

,

Free

,

Extra Questions

,

past year papers

,

practice quizzes

,

Sample Paper

,

Online Tests

,

Important questions

,

Online Tests

,

MCQs

,

Objective type Questions

;