Accumulated depreciation

accumulate là gì
đang là chủ đề được rất nhiều mọi người tìm kiếm. Wiki19 chuyên cung cấp các thông tin thủ thuật về công nghệ mới nhất. Việc lựa chọn nguồn thông tin phù hợp chính xác trở lên hết sức khó khăn. Hôm nay xin giới thiệu đến các bạn Accumulated depreciation . Cùng theo dõi ngay cách làm tại video bên dưới nhé:

What is accumulated depreciation? Accumulated Depreciation is the title of the contra asset account on the balance sheet which is used when depreciation expense is recorded each accounting period. Let’s review how accumulated depreciation works with an example.nnLet’s take a fixed asset which we purchased for $100,000 and use for 5 years. When we bought the fixed asset, we put it on the balance sheet for its full value. When we start using it, assuming we use linear depreciation and a residual value of 0, we book a cost of $20,000 per year as a debit in our income statement (or Pu0026L), and the offset of that journal entry is a credit to a balance sheet account called accumulated depreciation. If you want to know the book value or carrying value of the fixed asset at the end of year 1, you net together the historical cost of the fixed asset on the balance sheet, and the accumulated depreciation on the balance sheet, which is $100,000 minus $20,000, so the net book value equals $80,000. This information is recorded in two separate accounts, as you want to preserve the information of what you originally spent to purchase the asset, and what you have depreciated on it history-to-date. In year 2, you repeat the same depreciation journal entry, and get to a book value of $60,000. And on and on for years 3, 4 and 5.nnThe difference between depreciation expense and accumulated depreciation is that depreciation expense appears as an expense on the income statement, and accumulated depreciation is a contra asset reported on the balance sheet. The income statement is reset to zero at the start of every year, so you start with zero in depreciation expense every year, and build it up in twelve monthly increments. The accumulated depreciation amount on the balance sheet keeps growing over the years, all the way to the point that the fixed asset is fully depreciated, or the point where you sell the fixed asset at, above or below book value.nnWould you like to learn more about depreciation? Check out my 9 minute video overview:
de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
accumulated depreciation, accumulated depreciation meaning, accumulated depreciation journal entry, fixed asset accounting, accumulated depreciation journal …
Cảm ơn các bạn đã theo dõi hết bài viết về chủ đề Accumulated depreciation. Rất mong các bạn hài lòng về bài viết, mọi thắc mắc xin comment xuống phía dưới. Mong các bạn ủng hộ website hơn nữa.

Xem thêm :   Chia sẻ kiến thức pháp luật - Luật Kinh tế - Công ty Trach nhiệm hữu hạn 2 Thành viên

We will be happy to hear your thoughts

Leave a reply
Enable registration in settings - general