Class 11 Exam > Class 11 Videos > Depreciation Accounting
Depreciation Accounting Video Lecture - Class 11
FAQs on Depreciation Accounting Video Lecture - Class 11
| 1. What is depreciation accounting? |  |
Ans. Depreciation accounting refers to the systematic allocation of the cost of a tangible asset over its useful life. It aims to match the expense of the asset with the revenue it generates over time. This process helps in recognizing the wear and tear or obsolescence of assets, reflecting their reduced value on the balance sheet.
| 2. How is depreciation calculated? | |
Ans. Depreciation can be calculated using various methods, including straight-line depreciation, declining balance method, and units of production method. The most common method is the straight-line method, 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 ($10,000/5).
| 3. What is the purpose of depreciation accounting? | |
Ans. The purpose of depreciation accounting is to allocate the cost of an asset over its useful life to reflect its gradual loss in value or usefulness. This allocation helps in determining the true profitability of a business by matching the expense of using the asset with the revenue it generates. Additionally, it ensures that the financial statements present a more accurate representation of the company's financial position.
| 4. Can depreciation be reversed? | |
Ans. No, depreciation cannot be reversed. Once an asset's value has been depreciated, it cannot be restored or increased. Depreciation is a non-cash expense that represents the reduction in value of an asset over time, and it is recorded as an expense on the income statement. However, it is important to note that the depreciation expense may vary depending on the chosen depreciation method and the estimated useful life of the asset.
| 5. How does depreciation affect taxes? | |
Ans. Depreciation can have a significant impact on taxes. In many countries, businesses are allowed to deduct the depreciation expense from their taxable income. This deduction reduces the amount of income subject to taxation, resulting in lower tax liabilities. By depreciating assets, businesses can effectively reduce their taxable income and save on taxes. However, it is important to comply with the tax regulations and depreciation guidelines set by the respective tax authorities.
Related Exams
About this Video
|
4.98/5 Rating |
|
Nov 17, 2024 Last updated |
Depreciation Accounting for Class 112024 is part of Class 11 preparation. The notes and questions for Depreciation Accounting
have been prepared according to the Class 11 exam syllabus. Information about Depreciation Accounting covers all important topics
for Class 112024 Exam. Find important definitions, questions, notes, meanings, examples, exercises
and tests below for Depreciation Accounting.
Description
Video Lecture & Questions for Depreciation Accounting Video Lecture - Class 11 - Class 11 full syllabus preparation | Free video for Class 11 exam.
Information about Depreciation Accounting
Here you can find the 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 Class 11 tests.
|
Explore Courses for Class 11 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Depreciation Accounting Video Lecture - Class 11
,practice quizzes
,video lectures
,Exam
,Important questions
,Viva Questions
,Extra Questions
,Free
,shortcuts and tricks
,Objective type Questions
,ppt
,Previous Year Questions with Solutions
,Semester Notes
,study material
,Depreciation Accounting Video Lecture - Class 11
,Depreciation Accounting Video Lecture - Class 11
,MCQs
,Summary
,mock tests for examination
,past year papers
,Sample Paper
;
Study Depreciation Accounting on the App
Students of Class 11 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 Class 11 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