Chapter 8 - Accounting For Non Current Assets Flashcards
1
Q
What is the transaction to write off depreciation?
A
Debit depreciation.
Credit accumulated depreciation.
2
Q
What are the causes of depreciation?
A
Wear and tare.
Technical obsolescence.
3
Q
How do you calculate depreciation for the straight line method?
A
Depreciation is equal to (cost - residual value)/useful life.
