Overview of Fixed Assets (Grade 11 NSC Matric Accounting): Flashcards
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Asset definition
Asset definition
Item business owns providing future financial benefits
Non-current vs current asset time criteria
Non-current vs current asset time criteria
Non-current: >1 yr; Current: within 1 yr
Why fixed assets = tangible assets
Why fixed assets = tangible assets
Can physically touch them
Cost price components
Cost price components
Purchase + transport + registration + installation
Depreciation definition
Depreciation definition
Spreading asset's cost across its useful life
Two purposes of depreciation
Two purposes of depreciation
Record expense usage & tax benefit (deductible)
Straight line method feature
Straight line method feature
Constant depreciation yearly (same % of cost price)
Diminished balance method feature
Diminished balance method feature
Decreasing depreciation yearly (% of carrying value)
Carrying value formula
Carrying value formula
Cost price - Accumulated depreciation
Minimum carrying value
Minimum carrying value
R1 (cannot be R0 in books)