![]() In the United States, accountants must adhere to Generally Accepted Accounting Principles (GAAP) in calculating and reporting depreciation on financial statements. ![]() ![]() This helps in getting a complete picture of the revenue generation transaction. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. Land is the only exception which cannot be depreciated as the value of land appreciates with time.ĭepreciation allows a portion of the cost of a fixed asset to the revenue generated by the fixed asset.An example of fixed assets are buildings, furniture, office equipment, machinery, vehicles, etc.In accounting terms, depreciation is defined as the reduction of recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible.In this video, I will share what depreciation is, and how to enter it into QuickBooks both for Desktop and Online users. Did you just get your depreciation schedule from your tax professional?Īre you ready to learn how to enter depreciation into QuickBooks?
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