Chapter 6: Depreciation
Learning Outcomes
At the end of this chapter, you should able to:
- Define depreciation.
- Understand the various methods of calculating depreciation.
Assets purchased at a particular time may provide services over a finite future period, a notable exception for land. The account will allocate the cost of the asset to the accounting periods in which it generates revenues – a periodic expense item called depreciation. Among reasons for depreciation include time factor, decay, worn out, etc.
