Depreciation Flashcards
1
Q
How is depreciation calculated
A
Depreciation= cost - residual value/ useful life
2
Q
what entity has unlimited useful life?
A
land only
3
Q
how is Carrying Amount calculated?
A
carrying amount= cost - accumulated depreciation
4
Q
formula for straight line depreciation
A
cost - residual value/useful life
5
Q
formula for reducing balance depreciation
A
depreciation rate (%) x carrying amount
6
Q
where is accumulated depreciation placed in DEAD CLIC
A
its opposite of asset so Credits
7
Q
double entry for accumulated depreciation
A
Dr depreciate expense, Cr Accumulated depreciation
8
Q
formula for depreciation AFTER change
A
carrying amount - new residual value/ remaining useful life
