Learn two depreciation methods easily with these FREE posters. Depreciation is an expense that goes to the Income Statement and reduces assets in the Balance Sheet.
In a question, you will be instructed to use one of the two depreciation methods to calculate the value of depreciation to record as an expense at the end of the accounting period.
These two posters will help you to do your calculations fast so you can focus on working on the financial statements for the big marks.
Two common depreciation methods
Straight-line method
The straight-line method of depreciation is also called fixed or equal installment method. Depreciation remains the same each year. The formula is:
Cost of fixed asset less residual value / useful life (no. of years)
Reducing balance method
The reducing balance method of depreciation is also called diminishing balance method. Depreciation reduces each year. A percentage is usually given to make deductions.
These FREE posters will help you to learn depreciation methods quickly so that you can spend your study time learning the difficult topics. These posters prepare you to do homework better, pass exams or do basic accounting for a small business.
How to learn depreciation methods with these FREE posters
When you download these FREE posters to learn depreciation methods, you can print the documents on paper size 8.5×11 inches, landscape orientation.
These posters have everything needed to learn depreciation methods to do a question properly.
Stick the posters on the wall of your study area to learn depreciation methods. Whenever you are doing an accounting question, make sure to look up and check your posters for guidance.
Eventually, you would not have to look at the posters again because you would learn depreciation methods so well that the information would be stuck in your memories.
Download FREE posters and learn depreciation methods
Straight-line method
Reducing balance method
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