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

Items owned & used for years to generate income (e.g. machinery)

Gradual decline in value of fixed assets over useful life

Same depreciation amount charged each year

Higher depreciation early, applied to remaining book value

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

Tracks total depreciation charged on asset over time

Credit balance $>$ debit balance in disposal account

Land and buildings (may increase in value)

Records increase in asset value from revaluation

Non-cash expense