allowance for depreciation

简明释义

折旧率

英英释义

例句

1.Each year, the business sets aside an allowance for depreciation to cover the wear and tear on its equipment.

每年，公司会留出一个折旧准备金来弥补设备的磨损。

2.Investors often look at the allowance for depreciation when analyzing a company's financial health.

投资者在分析公司的财务健康时，通常会关注折旧准备金。

3.The allowance for depreciation is crucial for accurately assessing the company’s net worth.

对于准确评估公司的净资产，折旧准备金是至关重要的。

4.In preparing the financial statements, we need to account for the allowance for depreciation on our vehicles.

在准备财务报表时，我们需要考虑我们车辆的折旧准备金。

5.The accountant made an allowance for depreciation to reflect the decrease in value of the company's machinery over time.

会计做了一个折旧准备金以反映公司机器随时间价值的减少。

作文

In the world of finance and accounting, understanding various terms is crucial for effective management and decision-making. One such term is allowance for depreciation, which plays a significant role in financial reporting and asset management. This concept refers to the systematic allocation of the cost of a tangible asset over its useful life. By recognizing this expense, businesses can more accurately reflect their financial position and performance. In this essay, we will explore the meaning of allowance for depreciation and its implications for businesses.When a company acquires a fixed asset, such as machinery or equipment, the initial purchase price is capitalized on the balance sheet. However, as time passes, these assets lose value due to wear and tear, obsolescence, or other factors. To account for this loss in value, businesses must establish an allowance for depreciation. This allowance serves as a non-cash expense that reduces the book value of the asset over time, thereby reflecting its current worth more accurately.The process of calculating allowance for depreciation can be done using various methods, including straight-line, declining balance, or units of production. The straight-line method is the simplest, where the cost of the asset is evenly spread over its estimated useful life. For example, if a company purchases a piece of equipment for $10,000 with a useful life of 10 years, it would record an annual allowance for depreciation of $1,000. On the other hand, the declining balance method accelerates the depreciation expense in the earlier years of the asset's life, reflecting the fact that many assets lose value more quickly when they are new.The importance of allowance for depreciation extends beyond just accounting practices; it also has tax implications. In many jurisdictions, businesses can deduct depreciation expenses from their taxable income, thereby reducing their overall tax liability. This tax shield provides an incentive for companies to invest in capital assets, knowing that they can recover some of the costs through tax deductions over time.Moreover, understanding allowance for depreciation is vital for investors and stakeholders who assess a company's financial health. A higher depreciation expense may indicate that a company is investing heavily in its assets, which can be a positive sign of growth. However, excessive depreciation may also raise concerns about the sustainability of the company's operations and its ability to maintain its assets.In conclusion, the term allowance for depreciation encapsulates a fundamental aspect of financial accounting that allows businesses to allocate the cost of their tangible assets over time. By doing so, companies can present a more accurate picture of their financial performance and position. Furthermore, this allowance has significant tax benefits and implications for investors. As businesses continue to invest in assets, understanding how to manage and report allowance for depreciation will remain a critical skill for financial professionals and business leaders alike.

在金融和会计的世界中，理解各种术语对于有效管理和决策至关重要。其中一个术语是折旧准备金，它在财务报告和资产管理中发挥着重要作用。这个概念指的是对有形资产成本在其使用寿命内的系统性分配。通过确认这一费用，企业可以更准确地反映其财务状况和业绩。在本文中，我们将探讨折旧准备金的含义及其对企业的影响。当一家公司购买固定资产，如机械或设备时，初始购买价格会在资产负债表上资本化。然而，随着时间的推移，这些资产由于磨损、过时或其他因素而贬值。为了考虑这种价值的损失，企业必须建立折旧准备金。这一准备金作为一种非现金费用，随着时间的推移减少资产的账面价值，从而更准确地反映其当前价值。计算折旧准备金的过程可以使用多种方法，包括直线法、递减余额法或生产单位法。直线法是最简单的，其中资产的成本均匀地分摊到其估计的使用寿命上。例如，如果一家公司以10,000美元的价格购买了一台设备，使用寿命为10年，则每年会记录1,000美元的折旧准备金。另一方面，递减余额法在资产生命周期的早期加速折旧费用，反映出许多资产在新购时贬值更快的事实。折旧准备金的重要性不仅限于会计实践；它还有税务影响。在许多司法管辖区，企业可以从应税收入中扣除折旧费用，从而减少整体税负。这一税收保护为公司投资资本资产提供了激励，因为他们知道可以通过税收减免逐渐回收部分成本。此外，理解折旧准备金对于评估公司财务健康状况的投资者和利益相关者也至关重要。较高的折旧费用可能表明公司在其资产上进行大量投资，这可能是增长的积极信号。然而，过度的折旧也可能引发对公司运营可持续性及其维护资产能力的担忧。总之，术语折旧准备金概括了财务会计的一个基本方面，使企业能够在一段时间内分配其有形资产的成本。通过这样做，公司可以更准确地展示其财务表现和状况。此外，这一准备金在税务上具有重要的好处，对投资者也有影响。随着企业继续投资于资产，理解如何管理和报告折旧准备金将继续成为财务专业人士和商业领袖的重要技能。