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Q: Depreciation is an allocation technique it is not a technique?
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Related questions

What is the difference between depreciation in accounting and depreciation in economics?

In accounting, depreciation is an allocation of a previous expenditure, while in economics depreciation represents a decline in current value.


What is the systematic allocation of a fixed assets cost to expense?

Depreciation.


The systematic allocation of land's cost to expense is called depreciation?

true


How is partitioned allocation different from relocatable partitioned allocation?

Partitioned allocation is a fixed memory allocation technique which memory spaces are divided into smaller fixed partition, while Relocatable partitioning use variable and repartitioning technique


In accountancy what does depreciation refer to?

In accountancy depreciation refers to two different aspects: 1. the decrease in value of assets and 2. the allocation of the cost of assets to periods in which the assets are used.


What is depreciation and why is it included in the balance sheet?

Depreciation is allocation of fixed asset cost to income statement of useful life of asset that's why shown as reduction in fixed asset value.


Is depreciation included as a cash flow in capital budgeting?

No depreciation is not included as depreciation is allocation of part of assets cost to income statement while in capital budgeting, full cost of asset is already included so if depreciation will also be included then there would be double counting of same asset.


Which principle best describes the conceptual rationale for the method of matching depreciation expense with revenues?

Systematic and rational allocation


Does the journal entry for depreciation involve Cash account?

No, Depreciation is the process of allocation of fixed asset cost for it's useful revenue earning value to each fiscal year's income statement. So it does not affect cash.


Is depreciation expense under administrative expense?

Depreciation expense can be allocated to Administrative Expense or Selling & Marketing Expense or even to Cost Of Goods Sold. The amount of allocation and how that is done is specific to the type of business or industry.


Is depreciation considered part of the cash budget?

Depreciation is not part of cash budget as this is not cash expense rather it is just the allocation of fixed asset cost to specific fiscal year in which that fixed asset is used so there is no cash outflow due to depreciation and that’s why it is not included.


How does depreciating expense differ from other expenses?

Depreciation is differ in this sense that depreciation is not a direct expense like other expenses rather it is the allocation of fixed asset cost over useful life of asset to income statement.

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