Commerce Exam > Commerce Videos > Accountancy Class 11 > Meaning of Depreciation
Meaning of Depreciation Video Lecture | Accountancy Class 11 - Commerce
|
82 videos|167 docs|42 tests
|
FAQs on Meaning of Depreciation Video Lecture - Accountancy Class 11 - Commerce
| 1. What is the meaning of depreciation in accounting? |  |
Ans. Depreciation in accounting refers to the systematic allocation of the cost of an asset over its useful life. It represents the reduction in the value of an asset due to wear and tear, obsolescence, or other factors. Depreciation allows businesses to accurately reflect the decrease in value of their assets on their financial statements over time.
| 2. How is depreciation calculated? | |
Ans. Depreciation can be calculated using various methods, such as straight-line depreciation, declining balance depreciation, or units of production depreciation. The most common method is straight-line depreciation, which involves dividing the cost of the asset by its useful life. For example, if an asset costs $10,000 and has a useful life of 5 years, the annual depreciation expense would be $2,000 ($10,000 divided by 5).
| 3. What is the difference between depreciation and amortization? | |
Ans. While both depreciation and amortization involve the allocation of costs over time, they are used for different types of assets. Depreciation is used for tangible assets, such as buildings, vehicles, or machinery, whereas amortization is used for intangible assets, such as patents, copyrights, or trademarks. The methods of calculation may also differ between the two.
| 4. Why is depreciation important for businesses? | |
Ans. Depreciation is important for businesses because it helps them accurately reflect the decrease in value of their assets over time. By recording depreciation expenses, businesses can match the cost of an asset with the revenue it generates during its useful life. Additionally, depreciation allows businesses to estimate the replacement cost of assets and plan for future capital expenditures.
| 5. Can depreciation be reversed or reversed? | |
Ans. Generally, depreciation is a non-reversible process in accounting. Once an asset's value is depreciated, it is considered a permanent reduction in value. However, if an asset is impaired or no longer in use, it may be subject to impairment or disposal, which could result in a reversal or adjustment of the depreciation. Such reversals are exceptional cases and require specific circumstances outlined in accounting standards.
About this Video
|
2.1K Views |
|
4.83/5 Rating |
|
Nov 23, 2024 Last updated |
Video Description: Meaning of Depreciation for Commerce 2024 is part of Accountancy Class 11 preparation.
The notes and questions for Meaning of Depreciation have been prepared according to the Commerce exam syllabus.
Information about Meaning of Depreciation covers all important topics for Commerce 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Meaning of Depreciation.
Introduction of Meaning of Depreciation in English is available as part of our Accountancy Class 11 for Commerce & Meaning of Depreciation in
Hindi for Accountancy Class 11 course. Download more important topics related with notes, lectures and mock test series for
Commerce Exam by signing up for free.
Description
Video Lecture & Questions for Meaning of Depreciation Video Lecture | Accountancy Class 11 - Commerce - Commerce full syllabus preparation | Free video for Commerce exam to prepare for Accountancy Class 11.
Information about Meaning of Depreciation
Here you can find the meaning of Meaning of Depreciation defined & explained in the simplest way possible.
Besides explaining types of Meaning of Depreciation theory, EduRev gives you an ample number of questions to practice Meaning of Depreciation tests,
examples and also practice Commerce tests.
|
82 videos|167 docs|42 tests
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Objective type Questions
,Previous Year Questions with Solutions
,Important questions
,Semester Notes
,past year papers
,Meaning of Depreciation Video Lecture | Accountancy Class 11 - Commerce
,mock tests for examination
,video lectures
,Extra Questions
,MCQs
,shortcuts and tricks
,Free
,Exam
,Meaning of Depreciation Video Lecture | Accountancy Class 11 - Commerce
,Viva Questions
,Sample Paper
,ppt
,study material
,practice quizzes
,Summary
,Meaning of Depreciation Video Lecture | Accountancy Class 11 - Commerce
;
Study Meaning of Depreciation on the App
Students of Commerce can study Meaning of Depreciation alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Meaning of Depreciation,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Meaning of Depreciation is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup