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Insurance Policy Method
Under this method, instead of investing the money in securities an insurance policy for the…
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Depreciation Fund Method
Business assets become useless at the expiry of their life and therefore, need replacement. However,…
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Annuity Method
Sofar we have described such methods of charging depreciation which ignore the interest factor. Also,…
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Methods Of Calculating Depreciation
The following are various methods of depreciation in use: 1. Fixed instalment method or straight-line…
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Causes Of Depreciation
The depreciation occurs because of the following: 1. Constant use: The constant use of assets…
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Accounting For Depreciation
Introduction The term depreciation refers to the reduction in or loss of quality or value…
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Valuation Of Inventory For Balance Sheet Purpose
In certain cases, it is not possible for the business to take inventory on the…
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Methods Of Valuation Of Inventories
The basic methods of valuation of inventories are as follows: (a) Historical cost-based method (b)…
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Inventory Valuation Methods
Introduction The literary meaning of the word inventory is stock of goods. To the finance…
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Conversion Method
We have seen under the net worth method in the preceding explanation that the method…