Depriciation techniques

What are the merits and demerits of the techniques shown below of depreciation?

• Straight line process
• Reducing balance process
• Revaluation process
• Usage process
• Sum of digits process

E

Expert

Verified

You can select whichever technique you like though make sure you utilize according to the business you are running. When you want to utilize your expense in present period to produce extra income then use double declining process. When you are not concerned regarding extra income then use straight-line process.

   Related Questions in Financial Accounting

  • Q : Implications of fixed and flexible

    Explain “balance of payments” identity and discuss some of its implications under the fixed and flexible exchange rate regimes.

  • Q : Creativity and the Individual What are

    What are the various aspects of Creativity on an individual in the creative industry ?    

  • Q : Calculate the bad debt expense for the

    The Webster Company uses the aging method to estimate the allowance for doubtful accounts. The following schedule of accounts receivable was prepared as at December 31, 20x6: Age Balance %

  • Q : Define Asset Purchase Asset Purchase :

    Asset Purchase: Agreement between seller and buyer to obtain an organization's assets. In an asset purchase, only particular assets transfer ownership from seller to the buyer. Assets should be re-titled to the latest owner who has the capability to d

  • Q : Theory of comparative advantage Specify

    Specify the considerations that could bound extent to which theory of the comparative advantage is practical?

  • Q : Maintaining the fixed exchange rate

    Explain why “Once  the capital markets are integrated, it becomes difficult for the country in order to maintain the fixed exchange rate”. 

  • Q : Calculate depreciation expense for the

    On December 31, 20x3, the PPE Company purchased an asset costing $1,000,000. The asset’s useful life is expected to be 10 years with a residual value of $300,000. a. Calculate the depreciation expense for 20x4 using:

  • Q : Essay topics related to Religion I have

    I have some problem related to Essay topics which are related to Religion which are illustrated below: Topic A:What are the qualities of the ‘perfect&rsq

  • Q : Define the term Accounts Payable

    Accounts Payable: It is an accounting entry which symbolizes an entity's obligation to pay off a short-term debt to its creditors. Accounts payable entry is found on balance sheet beneath the heading current liabilities. Accounts payable are frequentl

  • Q : What is Balance of payments Define the

    Define the term Balance of payments.

©TutorsGlobe All rights reserved 2022-2023.