What is double-declining-balance method?

Q: Define the term declining-balance?

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: What is par value?

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: Why are some analyses called horizontal and others calledvertical?

A: In order to identify the reason behind that some analyses are called horizontal and others are…

Q: What are the Uneven-Payment Series?

A: What are the Uneven-Payment Series.

Q: In words, what is put-call parity?

A: Put-Call Parity It is a fundamental that shows the relation of option price i.e the European call…

Q: Wich type of interest, the factor (F/P,i, n) replace?

A: While calculating compounding interest we have to find future value.

Q: a. What is the break-even value in Dirhams?

A: Information Provided: Selling price = 70 Variable cost = 30 Advertising costs = 263,069 Rent costs…

Q: Describe the Declining-Balance Method with examples?

A:

Q: what is Backwardation b. What is Contango c. What is Basi

A: Backwardation and Contango are two types of trends in the future and spot prices and can be defined…

Q: Which of the following would a decrease

A: Accounts receivable:   The amount of money to be received by the company for the sale of goods and…

Q: What is a  negative balance?

A: There is a chart of accounts in accounting which contains various accounts heads like- there are…

Q: Why is the declining-balance method most widely used?

A: Double-declining-balance method: The depreciation method which assumes that the consumption of…

Q: Explain the effect of compensating balance with example.

A: Compensating Balance Compensating Balance is refer as the minimum amount of the money which are…

Q: What is a limit order?

A: Limit order It is such an order to buy or trade a security at or superior to a predefined cost. The…

Q: What are the different liquidity tools?

A: Liquid assets are those assets which are either in cash form or can be converted into cash into…

Q: What is lien?

A: Lien: This is a case or legitimate right against properties normally utilized as collateral so as to…

Q: What is margin call?

A: The margin is defined as the money required from the traders for futures exchanges.  It is to…

Q: What is LIBOR?

A: London Interbank bank offering rate (LIBOR): it's a financial interest rate between two bank or…

Q: Explain the term differential analysis.

A: The term differential analysis is explained as follows:

Q: What are the Differences in Maturities?

A: Maturities in the context of the bond mean that bonds are issued for a specific period of time. It…

Q: at is regular underw

A: Regular Underwriting is the method through that a private or establishment takes on…

Q: What is discounting and compounding? What is the difference between them?

A: We need to use the equation of time value of money to explain the concept of discounting and…

Q: Distinguish between cumulative or noncumulative?

A: cumulative and noncumulative preferred is assumed since the key term is not given.

Q: When is a GAAP departure appropriate?

A: Definition:   Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to…

Q: what is the new balance (in $)?

A: Average Daily Balance Credit card companies normally use average daily balance  to charge interest…

Q: What does "Flat Compounding" mean?

A: According to the definition of ISDA; Flat compounding is the floating rate but treating the spread…

Q: What is the discount factor?

A: Discount factor, also known as the conversion factor refers to the value which is used to calculate…

Q: What is disbursal rate

A: Disbursal rate is an important concept in the realm of financial markets and in the realm of fintech…

Q: What is liquidity?

A: Cash is said to be the most liquid asset of the business. Assets are said to be highly liquid if…

Q: What is contra?

A: Contra in accounting terms means an account with balance that has opposite of the normal balance and…

Q: Define Declining-balance method.

A: Declining balance method refers to the way of depreciating fixed asset in accounts of company.

Q: Define the term Uneven-Payment Series?

A: Payment series: It can be defined as the sequential payments being made to another party over a…

Q: Define spin-out

A: Introduction: Spinouts helps the parent corporation by permitting it to emphasis on its core…

Q: Explain floater tranche?

A: Tranche: The is the coatings of pooled securities having diverse risk factors for diverse level on…

Q: DEFINE Balance Principle

A: The principal balance, in regard to a mortgage or other debt instrument, is the amount due and owing…

Q: What do we mean by a lump-sum Problem?

A: A lump-sum payment is a substantial amount of money paid all at once as opposed to in installments.…

Q: What is ‘Fixed’ APR and ‘Variable’ APR?

A: APR is percentage  Annual rate of interest  charged on credit cards or mortgages or loans.

Q: What is inverse floater?

A: Introduction: This question is related to the concept of financial derivatives. Derivative…

Q: What is put–call parity?

A: Conditions where two or more things are equal are known as parity. It refers to two securities…

Q: what give rises to the changes in PBO balance?

A: PBO stands for the Projected Benefit Obligation. It shows how much the company would need in its…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.