Topic: Concepts of Depreciation and Amortization
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Answers to Common Questions
What are the concepts of depreciation and amortization.?
Tangible assets (such as building, car, computer) are depreciated and intangible assets (such as patent) are amortized. Land is neither depreciated nor amortized. The concepts are similar...you buy an item, say a car for $20,000. You record... Read More »
Source: http://answers.yahoo.com/question/index?qid=20080311092623AAXnlT6
What are the concepts of depreciation and amortization in account...
reread chapter 1 Read More »
Source: http://answers.yahoo.com/question/index?qid=20080425064222AATxSIx
What Is Amortization and Depreciation?
Amortization and deprecation are two different methods of handling an asset deduction when you are using accrual accounting for your business. Amortization is used for intangible expenses, while deprecation is used for tangible expenses. Ac... Read More »
Source: http://www.ehow.com/info_7994886_amortization-depreciation.html
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Answers to Other Common Questions
In the world of accounting, there are two different types of transactions: cash and non-cash. This designation is important for the accountant; however, it makes analyzing a company's real earnings tricky. Two non-cash accounts are deprecia...
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Source: http://www.ehow.com/how_6387298_calculate-depreciation-amortizati...
Accrual accounting is different from cash accounting in that accrual accounting provides ways to record a transaction with no real cash exchange. Depreciation and amortization are two examples of non-cash transactions; that is, no cash real...
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Source: http://www.ehow.com/how_5626335_reduce-depreciation-amortization-...
:Depreciation and amortisation are conceptually the same. Depreciation is the term used for tangible fixed assets (excluding natural assets), whereas amortisation is used for intangible items.
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Source: http://wiki.answers.com/Q/What+is+the+differnt+between+depreciati...
Amortization usually refers to spreading an intangible asset's cost over that asset's useful life. Depreciation , on the other hand, refers to prorating a tangible asset's cost over that asset's life. Depreciation Is Applicable only on Fixe...
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Source: http://wiki.answers.com/Q/What_is_the_difference_between_amortiza...
Depreciation an amortization are treated as non cash items because the actual amount of depreciation can not be known in cash terms..the depreciation does not lead to any inflow ore outflow of cash ....the amounbt of depreciation is jst ded...
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Source: http://wiki.answers.com/Q/Why_depreciation_and_amortization_are_t...
Depreciation is an economic term referring to the decreasing value of an item over time. Most things decrease in value as they get older. Items are used, become worn, and most eventually become obsolete. Think of a pair of shoes or any comp...
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Source: http://wiki.answers.com/Q/What_is_the_concept_of_depreciation
Answer It means "don't try to claim that the property depreciates (loses value over time) faster than the IRS thinks is reasonable". The IRS forms will generally give you guidance or a tax acccountant does that for a living.
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