Question

What Is Depreciation? List Few Methods Of Providing Depreciation?

Answer 1

Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account for declines in value. Businesses depreciate long-term assets for both tax and accounting purposes.

Few methods of providing depreciation are:

• Income statement.
• Balance sheet.
• Statement of changes in equity.
• Cash flow statement.

Answer 2

Answer:

The decrease in the value of an asset is termed to be depreciation.