Financial Accounting

Chapter 10

The Nature of Depreciation

LEARNING OBJECTIVES

After studying this chapter, you will be able to

1. Define Depreciation

2. Know the Characteristic Features of “Depreciation”

3. Understand the Accounting Concept of Depreciation

4. Know the Salient Features of Depreciation

5. Understand the Causes of Depreciation

6. Know the Need for Depreciation

7. Understand the Factors that Affect Depreciation

8. To Calculate Depreciation for the Period for Which Depreciation is to be Charged Depending on Different Types of Problems

9. Understand Methods of Accounting Entries for Recording Depreciation

10. Understand Methods of Providing (Allocating) Depreciation

11. Understand the Meaning, Formula, Merits, Demerits and Applicability of Straight Line Method

12. Calculate the Rate ...