Describe annuity method of calculating depreciation
Briefly describe annuity method of calculating depreciation?
Expert
Under this method, the purchase of an asset is considered an investment of capital on that an assured rate of interest is earned. Cost of the asset and the interest are written down annually by equivalent installments till the book value of the asset is decreased to zero. The annual charge by method of depreciation is found out from the allowance tables. The annual charge for depreciation will be credited to asset account as well as debited to depreciation account while the interest will be debited to asset account and credited to interest account. The drawback of this method is that it is a problematical method to accusation depreciation. Secondly, the yoke on Profit and Loss account goes on rising with the passageway of time and the amount of interest goes on losing ground as years pass by. Therefore this method is best suited to those assets that need considerable investment and do not necessitate repeated additions.
Explain the term system user account in brief?
Briefly describe the term Gross Profit?
Write down the step for preparing a bank reconciliation statement?
Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company’s five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity Lab
Describe the general purpose of the statement of comprehensive income. In addition, explain the terms income and expenses as defined by the Conceptual Framework for Financial Reporting (IASB, 2010)
Explain what do you meant by the Bank Reconciliation? And how we can do its entry in the busy Software?
Describe briefly the term capital expenditures?
Briefly illustrate out the advantages of using absorption costing system for computing the total cost of product.
Give a brief introduction of the term ‘Cost Concept’?
As per Companies Act and Income Tax Act compare Depreciation?
18,76,764
1927667 Asked
3,689
Active Tutors
1445070
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!