Is Depreciation a long-term asset?

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Solution

Yes, accumulated depreciation is a resource or asset account with a credit balance known as long term contra resource account that is accounted for on the asset report under the heading Property, Plant, and Equipment. The measure of a long-term resource’s expense that has been designated, since the time that the resource was procured.

Also read:

What Is Depreciation?

MCQs on Depreciation

Difference Between Depreciation Expense and Accumulated Depreciation

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Similar questions

Q. From the following information, calculate Total Assets to Debt Ratio:

	₹		₹
Fixed Assets (Gross)	6,00,000	Accumulated Depreciation	1,00,000
Non-current Investments	10,000	Long-term Loans and Advances	40,000
Current Assets	2,50,000	Current Liabilities	2,00,000
Long-term Borrowings	3,00,000	Long-term Provisions	1,00,000

Q. Calculate Debt to Equity Ratio from the following information:

	₹		₹
Fixed Assets (Gross)	8,40,000	Current Assets	3,50,000
Accumulated Depreciation	1,40,000	Current Liabilities	2,80,000
Non-current Investments	14,000	10% Long-term Borrowings	4,20,000
Long-term Loans and Advances	56,000	Long-term Provisions	1,40,000

Write the word/term/pharse which can substitute each of the following statement :

The method of depreciation under which depreciation is calculated on original cost of asset.

Q. Write the word/term/pharse which can substitute each of the following statement :

Type of asset on which depreciation is provided

Q. Q. calculate Debt to equity Ration from the following information :
Rs. Rs.
Fixed assets (Gross) 8,40,000 Current Assets 3,50,000
Accumulated Depreciation 1,40,000 Current Liabilities 2.80.000
Non-Current Investment 14,000 10% Long -term Borrowings 4,20,000
Long term loans and advances 56,000 Long -term Provisions 1,40,000

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