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Revaluation method is a method of calcuating the depreciation. Sometimes, the value of non-current asset should be revalued according to the market condition for fairness.
The aim of this method is to show a higher depreciation charge in the early years of the life of an asset.
Reducing balance method results in higher depreciation charges in earlier years, and a much annual rate is required than for the straight line method if the asset is to be written off over the same period.
The straight line method of depreciation is the simplest and most popular methods of calcuating depreciation. You should according to the the orginal, the residual value, and the estimated useful value to calculate the annual depreciation charge.
Property, plant and equipment are tangible assets held by an anterprise for more than one accounting period for use in the production or supply of goods or services, for rental to others, or for administrative purposes.
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!Non current assets are the assets held by an enterprise for more than on accounting period for use in the production or supply of goods or services, for tental to others, or for administrative purposes. It [...]
The general journal and general ledger accounts record all the transtions and important information of the company. You must understand all the items of them, then you can analyse how the company is operating and make your business operating more better.
advertising Get “AccountingCoach Pro” only with $49 (one-time payment) to master this knowledge point. Start our free accounting course Now!The accruals concept is that income and expenses should be matched together and dealt with in the income statement for the period to which they relate, regardless of the period in which the cash was actually [...]
Bookkeeping principles record all the transacions in the business with accounting records by double entry. It’s shown in the journals and ledger accounts. Acorrding to this, we can prepare financial statements.
A current liability is a liability which is payable within 12 months of the balance sheet date.
A non-current liability is any other liability.
