Depreciation is all of the following, except: A. The difference between gross investment and net investment B. The consumption of fixed capital C. The difference between GDP and NDP D. The accumulation of capital stock

Question

Business

Damian White

15 December, 08:57

Depreciation is all of the following, except: A. The difference between gross investment and net investment B. The consumption of fixed capital C. The difference between GDP and NDP D. The accumulation of capital stock

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Jonah Wade · Answer 1

Depreciation is all of the following, except the accumulation of capital stock

Explanation:

Depreciation is an economic process by which a financial or intangible object is distributed over its usable life or life expectancy. Depreciation indicates how much the value of an object was used. Depreciation of assets allows companies to make revenue from such an asset, because every year the asset loses a part of its expense. It can have a major impact on earnings, if not taken into consideration.

There are several kinds of depreciation, such as direct depreciation and multiple tax deductions.

Accumulated depreciation is the amount among all depreciation on a property on a particular date.

The balance sheet bearing interest is the average expense minus some of the depreciation accrued.

After the loss has occurred, the holding value of an asset is considered the recovery value.