Hi!! :) Another blog about Math and this time it is about
Depreciation and Depreciation Schedule. At first, I don’t know the meaning of
Depreciation in business. So I listened very well to our Professor and
eventually I learned the meaning and purpose of this word. So these are the
topics that I learned.
What is Depreciation?
Depreciation
is a non-cash expense that reduces the value of an asset as a result of wear
and tear. Most assets lose their value over time (in other words, depreciate)
Importance of Depreciation
Depreciation is
an expense that will lower your company’s net income. The lower your net
income the less you will pay in income taxes. Depreciation is something that
you and your accountant must consider carefully when analyzing your tax
situation.
Formula: Depreciation = Cost – Scrap value
Next is what Depreciation Schedule is?
A Depreciation
Schedule is an accounting procedure for determining the amount of value left in
a piece of equipment.
So basically this is our topic for this week. It is short
but I think we must consider this topic as an important lesson because we can
use this if we open our own businesses. It can avoid some money problems so appreciate it, not
depreciate! :)
Checked by: Prof. Crisencio Paner
