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Why fixed asset are subject to depreciation?
fixed asset does not mean that the value of asset no decrease in future it,s for sure, that,s why we depreciate it annually.....
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Is depreciation an example of an asset?
Usually depreciation is set up as a contra account to equipment. So in Assets you have an Equipment Account and a Accumulated Depreciation-Equipment Account showing up on the Balance Sheet in the...
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Which assets are not subject to depreciation?
Land is not subject to depreciation because value of land doesnot depreciate rather appreciate and nobody knows the exact disposal time of land.
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Is depreciation a asset or liability?
The accumulated depreciation is a liability although it is netted off with the assets they relate to so they are shown in the asset part of the balance sheet. The depreciation charge for the year is...
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Why is depreciation is charged on assets?
depreciation -- Decline in the value of a currency, financial asset, or capital good. When applied to a capital good, depreciation usually refers to loss of value because of obsolescence, wear, or...