accounting..?

Question

what is depreciation expense, accounts,
depreciable asset
accumulated depreciation,
and what are the factors tro consider in computing depreciation,
and what are the two methods in computing,
thanks guyz..

Answer 1

Depreciation expense account is the value by which a fixed asset is reduced'
Depreciable asset is any asset except land which is considered to reduce in value with a pssage of time.
Accumulated depreciation is the total value of depreciation accumulated since obtaining the asset.
The computing of depreciation will depend on the type of asset. Many assets like vehicles depreciate faster in the early years. Market value of second hand assets could be used as a guide.

Answer 2

Depreciation expense is the amount depreciated that accounting year.
Depreciable asset is the asset like the Prperty, plant and equipment that can be considered for depreiciation.
Accumulated depreciation is the amount depreciated from an asset till now.
There are many depreciation methods. In the straight line depreciation, the factors to be considered are the life of the asset through which it is going to be depreciated and the historical cost of the asset.
In the annual percentage rate depreciaton or apr, large percentages are depreciated at the begining of the year. The factors to be considered in this type of depreciation method is what percentages are allowed by regulators at the early part of the depreciation time, asset value, which life cycle state the company is in etc;.

Answer 3

Depreciation Expense is a non-cash expense inc which the company allocates systematically the depreciable amount of an asset over its useful life. It is simply a process of ALLOCATION and NOT valuation. It is that portion of the cost or other amount substituted for cost allocated or charged as expense during an accounting period. (for wasting assets ---> depletion; for intangible assets ---> ammortization).

Depreciable asset - any asset that is subject to depreciation, depletion, ammortization, or impairment.

Two Methods of Computing Depreciation (i think what you mean are the kinds of depreciation; there are many ways to compute depreciation)
1. Physical Depreciation - related to the deprciable asset's wear and tear and deterioration over a period. It may be caused by: (a) wear and tear due to frequent use, (b) passage of time due to non-use, (c) action of the elements such as wind, rain, sunlight, etc., (d) accidents such as fire, flood, earthquake, and other natural disasters, and (e) diseases which is applicable to animals, wooden buildings and other biological assets.
2. Functional or Economic Depreciation - arises from obsolescence or inadequacy of the asset to perform efficiently. Obsolescence may arise (a) where there is no future demand for the product which the depreciable asset produces, or (b) when a new depreciable assets becomes available and the new asset can perform the same function for substantially less cost. Inadequacy, on the other hand, arises when the asset is no longer useful to the firm because of an increase in the volume of operations.

FACTORS to consider in computing depreciation:
There are three necessary factors to consider in computing depreciation, namely:
1. Depreciable Amount - the cost of an asser or other amount substituted for cost, less its residual value.
2. Residual Value - is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated cost of disposal, if the asset were already of the age and condition expected at the end of its useful life.
3. Useful Life - is either the period over which an asset is expected to be available for use by the entity, or the number of production or similar units expeted to be obtained from the asset by the entity.

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i hope the information above can help you... just send me a note if you need more clarification...

Answer 4

i swear i'm an accoutant but i never heared of the most of them, i only know accounts, and you wont understand it from me.
sorry