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Depreciation Accounting
Caption: Depreciation accounting is the process of allocating the cost of an asset over its useful life. It is important because it helps to provide a more accurate picture of an organization's financial performance and position by accounting for the gradual decline in the value of assets due to wear and tear, obsolescence, or other factors. There are several methods of calculating depreciation, including straight-line depreciation, declining balance depreciation, and units of production depreciation, and the choice of method depends on various factors.
Keywords: depreciation, accounting, asset, cost, useful life, non-cash expense, wear and tear, obsolescence, salvage value, residual value, straight-line depreciation, declining balance depreciation, units of production depreciation, financial performance, financial position.
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• B.Com 1st Semester Syl... This Video is to make clear of the concept of Accounting for Depreciation. The methods SLM and WDV are made with a simple example, to begin with. listen to the complete lecture and then post any comment or query below.