CA Foundation Exam > CA Foundation Videos > Business Economics for CA Foundation > What is Depreciation?
What is Depreciation? Video Lecture | Business Economics for CA Foundation
FAQs on What is Depreciation? Video Lecture - Business Economics for CA Foundation
| 1. What is depreciation in commerce? |  |
Ans. Depreciation in commerce refers to the systematic allocation of the cost of a tangible asset over its useful life. It represents the decrease in the value of an asset due to factors such as wear and tear, obsolescence, or decline in market value.
| 2. How is depreciation calculated? | |
Ans. Depreciation can be calculated using various methods such as straight-line method, declining balance method, and units of production method. The most common method is the straight-line method, which divides the cost of the asset by its useful life to determine the annual depreciation expense.
| 3. Why is depreciation important in commerce? | |
Ans. Depreciation is important in commerce as it helps in determining the true cost of using an asset over its useful life. It allows businesses to allocate the cost of the asset over its expected lifespan, which helps in accurate financial reporting and decision-making.
| 4. How does depreciation affect financial statements? | |
Ans. Depreciation affects financial statements by reducing the value of the asset on the balance sheet and increasing the depreciation expense on the income statement. This reduces the reported value of assets and net income, thereby impacting profitability ratios and overall financial performance.
| 5. Can depreciation be reversed or reversed? | |
Ans. Depreciation is generally considered a non-reversible process. Once an asset's value is depreciated, it is not typically reversed. However, if an asset's value increases significantly due to unforeseen factors such as market conditions, it may be revalued upwards to reflect its new value. However, this is not considered a reversal of depreciation but rather a revaluation.
About this Video
4.69/5
Rating
Oct 15, 2025
Last updated
Related Exams
Video Description: What is Depreciation? for CA Foundation 2025 is part of Business Economics for CA Foundation preparation.
The notes and questions for What is Depreciation? have been prepared according to the CA Foundation exam syllabus.
Information about What is Depreciation? covers all important topics for CA Foundation 2025 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for What is Depreciation?.
Introduction of What is Depreciation? in English is available as part of our Business Economics for CA Foundation for CA Foundation & What is Depreciation? in
Hindi for Business Economics for CA Foundation course. Download more important topics related with notes, lectures and mock test series for
CA Foundation Exam by signing up for free.
Description
Video Lecture & Questions for What is Depreciation? Video Lecture | Business Economics for CA Foundation - CA Foundation full syllabus preparation | Free video for CA Foundation exam to prepare for Business Economics for CA Foundation.
Information about What is Depreciation?
Here you can find the meaning of What is Depreciation? defined & explained in the simplest way possible.
Besides explaining types of What is Depreciation? theory, EduRev gives you an ample number of questions to practice What is Depreciation? tests,
examples and also practice CA Foundation tests.
Related Searches
mock tests for examination
,Free
,practice quizzes
,Semester Notes
,ppt
,What is Depreciation? Video Lecture | Business Economics for CA Foundation
,Previous Year Questions with Solutions
,Sample Paper
,MCQs
,Viva Questions
,Objective type Questions
,past year papers
,Important questions
,Summary
,Extra Questions
,shortcuts and tricks
,video lectures
,Exam
,What is Depreciation? Video Lecture | Business Economics for CA Foundation
,study material
,What is Depreciation? Video Lecture | Business Economics for CA Foundation
;
Study What is Depreciation? on the App
Students of CA Foundation can study What is Depreciation? alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the What is 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 What is Depreciation? is prepared as per the latest CA Foundation syllabus.
|
© EduRev
|
Education Revolution
|
|
Signup on EduRev and stay on top of your study goals
10M+ students crushing their study goals daily