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What is depreciation? Why is its calculation necessary? Give an example of straight line depreciation.

Depreciation is a periodic year end accounting adjustment (not an actual cash change), which represents the physical wearing out of Non-Current Assets ( NCAs) such as vehicles and buildings. If firms did not...
LH
Answered by Louis H. • Accounting tutor
4569 Views

What is ratio analysis and why is it being used?

Ratio analysis is a numerical technique of re-expressing financial statements. It aids decision making by summarising and interpreting financial statements more easily. There are different sets of ratios, ea...
NS
Answered by Nazik S. • Accounting tutor
3975 Views

What is the difference between reducing balance method depreciation and straight line depreciation?

The reducing balance method takes off a percentage of the value of a Non Current Asset each year. For example a an asset that is valued at £50,000 and depreciated at a rate of 10% per year will be depreciate...
JD
Answered by Jack D. • Accounting tutor
34655 Views

what is accounting

Accounting is the process of summarising, classifying, analysing financial statements to enable users of financial information make informed decisions
BJ
2728 Views

What is the difference between accounts in balance sheet and income statement

Balance sheet accounts are accumulated numbers after many years since the day of operation. Meanwhile, income statement accounts demonstrate the total value of transaction incurred only in the current (repor...
KN
Answered by Khanh N. • Accounting tutor
2797 Views