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What do you mean by appreciation?
Appreciation is the increase in the value of assets over time. This increase may occur for many reasons, including in the increase in demand or in decreasing supply. Appreciation may be the result of changes in the inflation or in the interest rates. An appreciation is the opposite concept of depreciation, where the depreciation means a decrease over time.
Appreciation means an increase in the value of the asset over a particular period of time. Appreciation has a positive result on the value of the assets and is the reverse of depreciation that means the fall in the value of assets. Appreciation may occur in stocks, currency, bonds or even real estate.
But in the case of accountancy, the term appreciation means the upward movement in the value of assets the company holds in its books of account. The appreciation is less common in accountancy as compared with the depreciation in the asset value. So, in many cases, the students find it very difficult to find appreciation in the value of assets and takes the help of the appreciation in the value of assets homework answers.
How to calculate the appreciation:
The easiest way of calculating the appreciation as mentioned in the appreciation in the value of assets homework answers help is thatâ€”
There are also another methods which help you to calculate the value of the appreciation over a certain period of time. Only the assignment help can help you to select the best method for calculating the appreciation.
What are the different types of appreciation?
Appreciation may be classified as Capital appreciation and Currency appreciation.
This type of appreciation increases the financial assets, and it depends on the entry in the books of account. This capital appreciation is calculated under the following formula:
Capital Appreciation= Sales price- Purchase price.
Here the value of the money gets appreciated and vice-versa.
How will you represent the appreciation in the final account?
For presentation of the appreciation in the final account, the following procedure may be followedâ€”
However, the company takes the appreciation as a casual entry and the depreciation as a usual entry.
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