This article throws light upon the top seven methods for charging depreciation on assets. The methods are: 1. Fixed Installment 2. Diminishing Balance Method 3. Annuity Method 4. Depreciation Fund Method 5. Insurance Policy Method 6. Revaluation Method 7. Depletion Method 8. Machine Hour Rate Method. Method # 1. Fixed Installment: This is the oldest and simplest method of charging [...]
In this article we will discuss about the advantages of historical cost. Firstly, historical cost principle automatically requires the recording of all actual transactions in the past. The market value of finished goods can be ascertained without knowing how the goods were actually produced. But there is no way to determine the historical cost of the goods without a record [...]
In this article we will discuss about the meaning and classification of current assets. Meaning of Current Assets: Current assets are defined as "cash and other assets that are expected to be converted into cash or consumed in the production of goods or rendering of services in the normal course of business". Items are included in current assets on the [...]