How does depreciation treat in financial statements?

[Shigobad20201]

Depreciation is the reduction in the value of product and servives in the business world , its a process where by the price of what you bought started going down with time.
Depreciation is the reduction in the value of product and servives in the business world , its a process where by the price of what you bought started going down with time.

 

[Sincerem]

In any business there comes a time when there is a reduction in the values of the companies or business assets. This is treated or addressed in the income or assets financial statement inventory of the company.

 

[Ononivami1]

Basically, I learnt that all the tools that you employed to rub your business depreciate everyday as you use them. To be in control, you will have to make savings for maintenance.

 

[Shigobad20201]

depreciation in a country always lead to the bad development in the business and other economic factors in a business and if care is not taken it always leads to th closure of a business.

 

[Setho]

Depreciation expense is reported on the income statement as any other normal business expense. If the asset is used for production, the expense is listed in the operating expenses area of the income statement. This amount reflects a portion of the acquisition cost of the asset for production purposes

This is why as a businessperson who do not understand so much about equipment, you should always look out for this kind of documents that are going to break it down in detail for you for you to understand what is happening.

 

[zelalem]

Depreciation is also recognized in the income statement and the company chooses to record depreciation as an expense rather than the cost of a fixed asset. This is not entirely common in most enterprises, but in most cases it depends on each enterprise's policies.

 

[Smiles20]

There are some things that you need to be able to start observing the right from when you are buying the machines because it is not going to be reflected on your income or your expenses statement.

 

[Setho]

Depreciation is something that there has been a lot of argument about how it is supposed to be calculated and as such I advise that you should calculate it on your own immediately after you have got that equipment.

 

[Shigobad20201]

Under normal circumstances, their should be money set aside from the gains made by the company because the machineries depreciation is a very important thing to consider.

There will always be depreciation one way or the other and that's the main reason why we need to have a seperate purse in which we need to say our gain , because of unforseen circumstances.

 

[Joseph555]

lot of people are depressed today not because they can't overcome the situation but because they don't know how to control it and stay happy. Happiness is a choice. Stay happy.

 

[frederick_9]

Depreciation expense is recorded on the income statement as an expense or debit, reducing net income. Accumulated depreciation is not recorded separately on the balance sheet. Instead, it's recorded in a contra asset account as a credit, reducing the value of fixed assets