Friday 16 May 2014

Depreciation

Depreciation: 

It is a method of allocating cost of a tangible asset over its useful life.

Tangible assets e.g. Buildings, Vehicle,inventory,computer, supplies,microwave oven, telephones, refregerator etc.

Useful life means the duration of its usefulness. For example a computer can be used for five years. Then its useful life is 5 years.


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