Using the extract below, calculate the amount oftotal current assets and type your amount in the space provided below Account Name Amount Cash $10,000 Buildings $75.000 Accounts payable $25,000 Loans payable within one year $15.000 Account receivables $55.000 Plant and equipment $30,000 Inventories $60.000 Revenue received in advance $120.000
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Using the extract below, calculate the amount oftotal current assets and type your amount
in the space provided below
Account Name
Amount
Cash
$10,000
Buildings
$75.000
Accounts payable
$25,000
Loans payable within one year
$15.000
$55.000
Plant and equipment
$30,000
Inventories
$60.000
Revenue received in advance
$120.000
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