CA Foundation Exam > CA Foundation Videos > Principles and Practice of Accounting > Depreciation Accounting
Depreciation Accounting Video Lecture | Principles and Practice of Accounting - CA Foundation
|
68 videos|160 docs|83 tests
|
FAQs on Depreciation Accounting Video Lecture - Principles and Practice of Accounting - CA Foundation
| 1. What is depreciation accounting? |  |
Ans. Depreciation accounting is a method used to allocate the cost of a tangible asset over its useful life. It helps in recognizing the reduction in the value of an asset due to wear and tear, obsolescence, or any other factors that decrease its value over time.
| 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, where depreciation expense is calculated by dividing the cost of the asset by its useful life.
| 3. Why is depreciation accounting important? | |
Ans. Depreciation accounting is important because it allows businesses to accurately measure the wear and tear of their assets over time. It helps in determining the true profit or loss of a business by allocating the cost of the asset over its useful life. Additionally, it provides insights into the value of assets and helps in making informed decisions regarding repairs, maintenance, and replacement.
| 4. What is the impact of depreciation on financial statements? | |
Ans. Depreciation has a significant impact on the financial statements of a business. It reduces the value of the asset on the balance sheet, which in turn affects the net income and retained earnings on the income statement. Additionally, it also affects the cash flow statement by reducing the cash flow from operations due to the depreciation expense.
| 5. Can depreciation be reversed or adjusted in the future? | |
Ans. No, depreciation cannot be reversed or adjusted in the future. Once the depreciation expense is recorded, it becomes a permanent reduction in the value of the asset. However, if there are any changes in the estimated useful life or salvage value of the asset, the depreciation method can be adjusted going forward.
Related Exams
About this Video
|
3.6K Views |
|
4.65/5 Rating |
|
Nov 24, 2024 Last updated |
Video Description: Depreciation Accounting for CA Foundation 2024 is part of Principles and Practice of Accounting preparation.
The notes and questions for Depreciation Accounting have been prepared according to the CA Foundation exam syllabus.
Information about Depreciation Accounting covers all important topics for CA Foundation 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Depreciation Accounting.
Introduction of Depreciation Accounting in English is available as part of our Principles and Practice of Accounting for CA Foundation & Depreciation Accounting in
Hindi for Principles and Practice of Accounting 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 Depreciation Accounting Video Lecture | Principles and Practice of Accounting - CA Foundation - CA Foundation full syllabus preparation | Free video for CA Foundation exam to prepare for Principles and Practice of Accounting.
Information about Depreciation Accounting
Here you can find the meaning of Depreciation Accounting defined & explained in the simplest way possible.
Besides explaining types of Depreciation Accounting theory, EduRev gives you an ample number of questions to practice Depreciation Accounting tests,
examples and also practice CA Foundation tests.
|
68 videos|160 docs|83 tests
|
Video Timeline
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
study material
,Summary
,Sample Paper
,Exam
,Previous Year Questions with Solutions
,Important questions
,Viva Questions
,past year papers
,Depreciation Accounting Video Lecture | Principles and Practice of Accounting - CA Foundation
,Extra Questions
,Free
,Depreciation Accounting Video Lecture | Principles and Practice of Accounting - CA Foundation
,video lectures
,ppt
,MCQs
,mock tests for examination
,Depreciation Accounting Video Lecture | Principles and Practice of Accounting - CA Foundation
,Objective type Questions
,practice quizzes
,Semester Notes
,shortcuts and tricks
;
Study Depreciation Accounting on the App
Students of CA Foundation can study Depreciation Accounting alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Depreciation Accounting,
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 Depreciation Accounting is prepared as per the latest CA Foundation 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