Why Land is not Depreciated? (2 Exceptions)
Since land is often classified with other long-term assets in the balance sheet that are depreciable such as buildings and equipment, it …
Fixed Assets
Assets that Can and Cannot Be Depreciated
To estimate the amount of profit and assets of any business correctly, we must know how to differentiate between assets …
Depreciation Base of Assets
Before we can calculate the depreciation expense of an asset, we need to know how much of its original cost will …
Sum of Years’ Digits Depreciation
Sum of the Years’ Digits (SYD) is a type of accelerated depreciation method that has a unique way of calculating the depreciation …
Straight Line Depreciation Method
The straight line method is the easiest way of spreading the cost of an asset over its useful life. In …
Double-Declining Balance Depreciation Method
Accelerated depreciation techniques charge a higher amount of depreciation in the earlier years of an asset’s life. One way of accelerating …
Capital and Revenue Expenditures
Business expenditures are accounted for in either one of the two ways. They are either expensed in the income statement …
