What is depreciation

Companies use their fastened belongings for a number of intervals underneath regular circumstances of use. It beneficial properties worth in accordance with the remaining state of the product used.


Monetary bills should be recorded in the course of the helpful life (financial life) of the product. These bills are written off by apportioning them over monetary intervals.


Depreciation is calculated in two methods. The primary is calculated utilizing the straight-line depreciation technique and the opposite is calculated utilizing the diminishing steadiness technique.


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