statement regarding depreciation
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Which statement regarding
Depreciation of noncurrent operating assets is an accounting process for the purpose of allocating asset costs over the periods benefited by use of the assets
Service value declines as a function of time rather than use, is the assumption on which straight-line depreciation is based
The composite depreciation method does not recognize gain or loss on the retirement of specific assets in the group.
The double-declining-balance method ignores salvage value in calculating periodic depreciation expense.
none of the above
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