Introduction to Depreciation

Depreciation method using the cost of a vehicle each year

• straight line

• reducing balance

• Revaluation

A term for scrap of resale value of a non current asset

• selling price

• residual value

• asset value

value of depreciation recorded in Statement of Financial Position

• carrying amount

• accumulated depreciation

• cost

• residual value

amount of depreciation recorded in Income Statement

• accumulated depreciation

• residual value

• carrying amount

• depreciation expense

cost - accumulated deprecation

• residual value

• carrying amount

• depreciation expense

• accumulated depreciation

Which is not a cause of depreciation

• technological

• depletion

• weather

• wear and tear

when we add depreciation at year end we

• Dr Accumulated Depreciation

  CR Statement of Financial Position

• Dr Income Statement Cr Accumulated Depreciation

• Dr Accumulated Depreciation

  Cr Income Statement

• Dr Statement of Financial Position

  Cr Accumulated Depreciation

Accumulated Depreciation is an

• asset

• expense

• liability

• Income