Straight line method to compute depreciation
Briefly describe straight line method to compute depreciation. What are it merits and demerits?
Expert
It is the easiest and mainly often employed technique. The components employed to compute Straight Line Method are illustrated below: i) Estimated life of Asset
ii) Cost of Asset
iii) Estimated Scrap vale-is the value of the asset at the end of life of the asset
Formula to calculate: Depreciation = (Cost of Asset-Estimated Scrap Vale)/Estimated life of Asset in years The main merits of this method are that an equivalent amount of depreciation is charged each year during the life of the Asset that makes the computation of depreciation simple. However the drawback of this way is that the amount of depreciation charged on the asset in the later years is high because of the diminished value of the asset.
Give a brief introduction of the term Capital Expenditure?
Give a brief introduction of the term ‘Money Measurement Concept’?
Write down the various kinds of expenditures considered for the reason of accounting?
What do you understand by the term discounted payback period?
Write down the merits and drawbacks associated with Deep Discount?
What account is salary outstanding? Is it real, personnel or nominal account
explain the accrual basis of accounting by defining principles involved
Give a brief introduction of the term Convention of Materiality?
Give a brief introduction of the term Equity Warrants?
Write down the various methods which are employed to discharge the function of management accounting?
18,76,764
1932839 Asked
3,689
Active Tutors
1421388
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!