Accumulated depreciation is a method of accounting for the annual reduction of an asset's value up to a single point in its usable life. This type of depreciation can be calculated using one of six methods: the straight line, declining balance, double-declining balance, sum-of-the-years' di...
such as a year. Depreciation expense is recognized on theincome statementas a non-cash expense that reduces the company's net income or profit. For accounting purposes, thedepreciation expense is debited, while theaccumulated depreciation is credited....
Low metrics are not necessarily a good sign either. For example, a company with very little accumulated depreciation over several years may not be accounting for depreciation accurately or may be spending huge amounts of money replacing fixed assets too soon. Accumulated depreciation itself is used ...
depreciation (redirected fromAccumulated Depreciation) Dictionary Legal Financial Acronyms Encyclopedia </>embed</> deflation slump depression drop fall devaluation depreciation noun Synonyms for depreciation Collins Roget's WordNet noundevaluation Synonyms ...
The $4,500 depreciation expense that shows up on each year's income statement has to be balanced somewhere, due to the nature ofdouble-entry accounting. The other side of the accounting entry goes into a special type of sub-account located under the balance sheet's property, plant, and eq...
Accumulated Depreciation: Accumulated depreciation is a contra account used to record the depreciation on the asset starting from the first year of use to date. It is reported as a deduction from the 'Property, plant and equipment section' in the balance sheet. ...