Studying business is quite a long and difficult task. One among the subjects that you get to study in your business course is accountancy. Most of the students face difficulties in the topic ‘depreciation’ that falls under accountancy and thereby fail to give an impeccable form to answers such as depreciation review questions homework answers. Such a problem seems like a big obstacle in their path to achieve a high score, but there’s a solution to every problem, however big it is.
On a personal note, opting for various homework help services that are available online has been of great help. Such services can provide you answers related to various topics in a proper format which is quite necessary to imbibe them properly in your brain. This lets you recall the same topic even after a long time.
When you are going to write answers like those related to depreciation review, you need to have a proper understanding of depreciation, its types and the purpose of studying it along with the knowledge of certain formulas used to calculate the different types of expenses.
Definition of depreciation helps you understand the term
With the advancement of technology and thereby the increased usage of internet, the exercise of reading textbooks among the students has decreased greatly. This very trend has become the major reason behind the difficulties that they face in apprehending the topics in their syllabus. In your homework answers such as depreciation review questions homework answers, you often encounter questions regarding the definition of depreciation.
Encapsulating the whole process of depreciation in a few words, it is the decrease in the recorded cost of an asset or property systematically until the value becomes negligible. The asset mentioned here may be a building, furniture, office equipment, machinery, etc. The only exception in this list of assets is the land which cannot be depreciated as its value increases with time howsoever.
Get aware of the different methods of depreciation
Just like the definition of depreciation is necessary for a student to know if he wants to produce good quality assignments concerning the same, the different sub types of depreciation are also recommended for a student to be aware of.
Depreciation is not as haphazard a process as it appears to be by definition, but is rather a more systematic and rational process. It may occur by three systematic methods, which can be named as straight line, declining balance, and usage based depreciation methods.
Specific methods of depreciation review
Homework answers such as depreciation review questions homework answers written in your assignments also need to contain the details of the three methods, which are quite simple to understand and write thereby.
- Straight-line depreciation method-
Includes allocation of equal amount if depreciation expense in equal phases.
- Declining balance depreciation method-
Includes allocation of higher depreciation expense in the earlier phase, which is followed by lesser expense in the later phase. Such a method is an accelerated depreciation method.
- Usage-based depreciation method-
Includes the allocation of depreciation expense on the basis of asset usage during the specified period.
Of the three methods, straight line one is the most popular and carries the highest weight in your assignments. You are free to seek help from various online homework help services available nowadays. Such services are credible as well as trusted for providing the best homework contents amongst the students.
Formulae knew to calculate the depreciation expense
Â While you need to mandatorily include theoretical content in your homework answers like depreciation review questions homework answers, you may also encounter some calculation based questions in your assignments.
In such questions, you have to calculate the depreciation expenses and thereby give conclusions and reviews about the depreciation of an asset. You may get those formulae in the homework answers as provided by online homework help services for students.
Realizing the purpose of studying depreciation review is important
Formulae and methods are always there to help one with various topic related problems. However, one can apply his interest in solving them only when he knows the purpose and significance of the same.
To one’s knowledge, the purpose of studying depreciation review is substantial to a company as it helps the company in deducing various aspects about its assets. This knowledge is greatly important for proper functioning of a business, which is why the future businessmen need to learn the topic by heart.
The information about an asset that can be deduced from the study of depreciation review can be encapsulated in a few bullets below. The students may also face such questions asking about the same in their assignments, and thus, the awareness is important to write homework answers such as depreciation review questions homework answers.
Other facets of this subject
- Determination of whether fixed assets have been rightly classified and depreciated for tax as per IRS rules is done via study of depreciation review.
- Identification of amounts capitalized in past years that are viable to be treated as expenses for repair and maintenance on the abandoned or retired assets or are disposed of before the commencement of new tax year.
Various aspects of an asset can be considered and improved
With the help of study of depreciation review, many improvements in relation to an asset can be made. Cash flow can be improved by means of the review. In addition, changes in recurrent policies and procedures adopted for accounting purpose too can be made with the help of depreciation review.
Depreciation review is as important for business like any other process or aspect. Therefore, studying it thoroughly becomes important for a student. Moreover, it helps one gain higher marks for answers such as depreciation review questions homework answers.