Depreciation affects the balance sheet by reducing the carrying value of the asset on the balance sheet. As the accumulated depreciation account increases, the net book value of the asset decreases. An example of depreciation would be a company purchasing a delivery truck for $50,000 with an estimated useful life of 5 years. Using the […]
Arquivos de Categoria: Bookkeeping
While the actual legislation can be confusing, it essentially means that every single business should keep track of every single transaction they make. In deciding which is the most appropriate recordkeeping system, it is best to consider if there are any policies and requirements set by relevant legal bodies. Here are some questions and answers […]