Monday, June 6, 2011     17:19

Frequently Asked Question


1. Exactly how to Make a Depreciation Schedule?
When you buy an asset for your business, you should expense the cost of using that asset over the period of time that you use it. This expense is called depreciation. Each asset will ultimately depreciate all of its value, at which time it should require to be replaced. To figure out how much an item requires to be depreciated each period, accountants come up with a depreciation schedule.

2. In what way to create a Depreciation Schedule?
Depreciation is a non-cash expense that is carried on the balance sheet and expensed on the income statement. The determination of depreciation is to reduce the book value of assets over time to account for the wear and tear on the asset owing to usage. The three foremost accounts used to track depreciation in a depreciation schedule are the depreciation expense, accumulated depreciation and current book value of the asset.

3. By what method to Calculate Depreciation?
Depreciation expense permits businesses to recover the value of assets or income-producing property that expires over time and through use. Depreciation is calculated for general ledger and tax purposes using numerous methods; still, the most common and simplest general ledger depreciation method is the straight-line method.


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