Depreciation

Rooms in this module

How this works

Each room answers one problem. A task is a few lines of reading, then questions you answer in the books: post to an account, type a figure, sort, match or write a journal. Every answer is marked at once, with the rule behind it. There are no videos.

Words in this module

Depreciation

Depreciation shares the cost of a non-current asset over the years it is used. Each year's share is an expense.

Non-current asset

A non-current asset is an asset a business keeps and uses for more than a year, such as a van, an oven or shop fittings.

Reducing balance depreciation

Reducing balance depreciation charges a fixed percentage of an asset's carrying amount each year, so the charge falls.

Straight line depreciation

Straight line depreciation charges the same amount in every year of an asset's useful life.

Questions