How does depreciation treat in financial statements?

[nimzy]

Well depreciation is something that is inevitable in any form of business but it most be avoided at all time and at all cost so to avoid high levels of loss In the business organisation because it will affect the income of the business.

 

[Kubiat-Abasi]

Depreciation is the deduction of the value of an asset or product when a product is depreciated, it will definitely have a negative impact on the total financial expenditure.

 

[Emmy]

Depreciation is the reduction in the value of assets and it is treated in the balance sheet and income statement. It will be added to the expenses on the debit side of income statement.

 

[kinqzbitz]

Depreciation is very bad and as business owners we must try our very best to avoid it because it will affect the business in a very negative way and that is very bad

 

[ahmedo24]

Depreciation is inevitable because we can even see that currencies are also losing value which is to show you that with time depreciation will come but whatever we are doing we should try as much as possible to maximize every opportunity and assets or a business provides before it becomes a depreciated entity or assets.

 

[Psalmseen]

Depreciation simply mean the wear and tear of an asset as a result of the usage and passage of time. Depreciation is always treated in the financial statement as an expense. It has to be calculated as such

 

[kinqzbitz]

Depreciation is actually the reduction in the value and quality of a product or an asset and so it must be taken very seriously because it can actually bring down a business

 

[Syldan]

Depression, which is associated with the wear and tear of the various fixed asset that are involved in the productivity of a given company or an organisation. this is something that is of high value and cost and it most always be avoided at all time. this is because it consump alot of resources when a replacement of it is expected or needed.

Post automatically merged: Dec 4, 2021

Well, depreciation in a company account, comes in different forms which is always tried to be avoided. This is because it takes the expenditure of company income on asset which has been bought already over a period of time and it will be recorded as an expenditure.

 

[Toyoabasi]

Depreciation is the deduction of the value of an asset or product when a product is depreciated, it will definitely have a negative impact on the total financial expenditure.

I have seen business owners include depreciation on a balance sheet and on an income statement, both would signify slightly different things though. Depreciation is the reduction in the value of assets.

 

[greenie]

Depreciation is charged from an asset at the end of the financial period. It is taken off to account for wear and tear of the asset and get the net value. On the other hand is charged as an expense for the year recored in the profit statement.

 

[Sotherefore]

Apart from that I think there is no other way that depreciation of a product can be taken from because it should mostly be taken from the balance or the original price of products.. apart from that I believe it can also be taken from the profit if any

 

[HayKay]

There's no other place or financial record that treats the idea of depreciation because the balance sheet is what carries the assets and liabilities column and from there, appreciation and depreciation can be calculated.

 

[Syldan]

Depreciation is a wear in the fixed asset of a company over a period of time and which needed to be settled in other to promote productive process. This covers the expense of income on things that may not increase productivity.

 

[Shigobad2020]

Depreciation of costomers affect market the financial statement of a business and will also slow down the business, as a wise because man you must always maintain your costomers to avoid depreciation of customers.

Depreciation of customers happens when the customers no longer trust the product a company is producing any more and they stop patronising the company which can slow down the business.

 

[Grandeur]

For a financial company, depreciation is charged to profit and loss and balance sheet, in the profit and loss its an expense which is a liability while in the balance sheet it usually offsets the balance of the asset.

 

[Heatman]

On the income statement, depreciation is usually shown as indirect, operating expenses. It is an allowable expenses that reduces a company's gross profit along with other indirect expenses like administrative and marketing cost.

When your money keeps losing value it is definitely going to be affecting your business in a very negative work because things are no longer going to be the way it is supposed to be.

 

[Syldan]

Depreciation is the actual wear in the value of production equipment which lower the rate of production and distribution which is required to be avoided at all cost. because the expenses that will be made on the repairs are unproductive.

 

[joy101]

Depreciation is not really good and we must also try to avoid it in any cost, in order not to affect your business, so you have to be focus so that you can reduce depreciation.

 

[Syldan]

Well, depreciation means the allocation of resources or productive resources on the various assets of which has been in existence but as a result of long time usage it depreciate it value and effectiveness.

 

[Setho]

Depreciation is usually very difficult for you to highlight on a balance sheet because of how you do not know the exact extent of the depreciation. This is why it is first of all advisable that you should estimate something like this the moment you bought it so that you can add the percentage across.