Depreciation | Business Finance (FINC101)
Автор: Spoon Feed Me
Загружено: 2014-12-04
Просмотров: 1002
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The objectives of this video are to briefly explain what depreciation is and give an overview on the straight-line and diminishing value method of calculating depreciations. In accounting, the concept of depreciation combines two aspects- the decrease in value of assets and the allocation of the costs of assets to periods in which the assets are used. Simply, depreciation is a rational & systematic process of distributing the cost of tangible assets over the life of assets.
Moving on, the video briefly illustrates straight-line and diminishing value method to calculate depreciation following an example where it asks to calculate total loss of equipment that a farm purchases for one million that last for twenty years before losing all worth. Next, it introduces value vs. time graph showing the calculation of annual depreciation. Later, the video asks to find out an annual straight-line depreciation cost for certain salvage value in the given problem.
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