Question

QuickBooks

Can the Fixed Asset Manager provide you a schedule of future depreciation? If so, what information is part of this schedule? Depreciation is an important concept in the accounting industry. What impact does depreciation have on the net income/loss and also on tax reporting?

Answer 1

Depreciation can be defined as putting down the value of an asset, specially fixed asset, due to wear and tear, obsolescing, passage of time etc. The fixed asset manager can provide a schedule of future depreciation. The information whichis part of this schedule is the tax system, asset, cost/basis, method, useful life, convention, business percentage, date acquired, deduction, year, year ending, year and year ended depreciation

On a company's income statement the depreciation expense is debited and accumulated depreciation expense is credited on its balance sheet, thus directly affects net income. Moreover by charting the decline in the value of an asset, depreciation decreases the amount of taxes a company or business pays via tax deductions.