Depreciation and Revaluation of Fixed Assets (Leaving Cert Accounting): Flashcards

Valuable items owned & used for several years to generate income

Gradual decline in value of fixed assets over their useful life

Same amount of depreciation charged each year

Higher depreciation in early years, applied to remaining book value

$\text{Cost of Asset} - \text{Accumulated Depreciation}$

Tracks total depreciation charged on asset over time

Credit balance larger than debit balance in disposal account

Debit balance larger than credit balance in disposal account

When property values rise significantly or to show accurate financial position

The increase in value of revalued assets