SSC CGL Exam > SSC CGL Videos > Tier 2 - Study Material, Online Tests, Previous Year > Depreciation: Overview
Depreciation Overview Video Lecture - SSC CGL Tier 2 - Study Material,
FAQs on Depreciation: Overview
| 1. What is depreciation? |  |
Ans. Depreciation is an accounting method used to allocate the cost of an asset over its useful life. It represents the decrease in value of an asset due to wear and tear, obsolescence, or any other factor that reduces its value over time.
| 2. Why is depreciation important in accounting? | |
Ans. Depreciation is important in accounting because it helps businesses accurately reflect the cost of using assets to generate revenue over their useful lives. It allows for the proper matching of expenses with the revenue they help generate, resulting in more accurate financial statements.
| 3. 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 the straight-line method, which divides the asset's cost by its useful life to determine the annual depreciation expense.
| 4. What is the impact of depreciation on taxes? | |
Ans. Depreciation can have a significant impact on taxes. It allows businesses to deduct a portion of the asset's cost as an expense each year, reducing their taxable income. This results in lower tax liability and can provide tax savings for businesses.
| 5. Can depreciation be reversed? | |
Ans. No, depreciation cannot be reversed. Once an asset's value is depreciated, it cannot be restored to its original value. However, if an asset is sold or disposed of, any remaining book value can be adjusted accordingly. The process of adjusting the book value is called "asset disposal."
About this Video
4.88/5 Rating
Apr 19, 2026 Last updated
Video Description: Depreciation: Overview for SSC CGL 2026 is part of SSC CGL Tier 2 - Study Material, Online Tests, Previous Year preparation. The notes and questions for Depreciation: Overview have been prepared according to the SSC CGL exam syllabus. Information about Depreciation: Overview covers all important topics for SSC CGL 2026 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Depreciation: Overview.
Introduction of Depreciation: Overview in English is available as part of our SSC CGL Tier 2 - Study Material, Online Tests, Previous Year for SSC CGL & Depreciation: Overview in Hindi for SSC CGL Tier 2 - Study Material, Online Tests, Previous Year course. Download more important topics related with notes, lectures and mock test series for SSC CGL Exam by signing up for free.
Description
Video: Depreciation: Overview of SSC CGL Tier 2 have been curated by the SSC CGL experts, helping you revise the topic quickly for exam preparation. Watch on EduRev.
Information about Depreciation: Overview
Here you can find the meaning of Depreciation: Overview defined & explained in the simplest way possible. Besides explaining types of Depreciation: Overview theory, EduRev gives you an ample number of questions to practice Depreciation: Overview tests, examples and also practice SSC CGL tests.
Related Searches
Objective type Questions, Extra Questions, study material, Important questions, Exam, MCQs, video lectures, Sample Paper, practice quizzes, Depreciation: Overview, past year papers, Depreciation: Overview, pdf , Previous Year Questions with Solutions, mock tests for examination, ppt, Viva Questions, Depreciation: Overview, shortcuts and tricks, Summary, Free, Semester Notes;