What does the term depreciation mean in accounting

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Reference no: EM131533861

Question: 1. Identify the asset class for each of the following:

(a) supplies,

(b) office equipment,

(c) inventory,

(d) land for future expansion, and (e) trucks used in operations.

2. On January 1, 2011, a company pays $77,000 to purchase office furniture with a zero salvage value. The furniture's useful life is somewhere between 7 and 10 years. What is the year 2011 straight-line depreciation on the furniture using

(a) a 7-year useful life and

(b) a 10-year useful life?

3. What does the term depreciation mean in accounting?

Reference no: EM131533861

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