Learn Depreciation for FREE!
This page contains our free online depreciation course. It will teach you the basics of depreciation and how to use depreciation in accounting.
The Course Covers:
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The basics of depreciation
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Depreciation methods
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The depreciation journal entry
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How to depreciate assets
Course Modules:
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Lesson 1: Depreciation Basics
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Lesson 2: Straight-Line Depreciation
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Lesson 3: Reducing Balance Depreciation
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Lesson 4: The Depreciation Journal
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Lesson 5: Accumulated Depreciation
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Lesson 6: The Fixed Asset Register
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Bonus Lesson: Disposing of Assets
To start the depreciation course, scroll down.
This course is FREE, and no registration is required!
FREE Online Depreciation Course
Part 1: An Introduction to Depreciation
Module overview:
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Course Overview
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What is depreciation
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Why is depreciation needed
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Which assets are depreciation
What is depreciation?
Depreciation is the process by which an asset loses value over time.
Most tangible assets lose value. For example, if a company were to buy a new van today, it would likely be worth less in a year. It would be worth even less in five years. This is because the asset is older, has more mileage, and is more used. This is called wear and tear. Because of wear and tear, assets decrease in value over time.
In accounting, why is depreciation needed?
The value of a business's assets is shown on the balance sheet. So do the business's liabilities and equity.
The value of the balance sheet must be a true reflection of the asset's worth. In accounting, if depreciation was not used, the assets would always show at cost price, no matter how old the assets were. This would not be accurate. Depreciation is used to bring down the value of the assets in the accounts in line with their actual value.
Which assets are depreciated?
In accounting, bookkeeping, and finance, tangible assets are usually depreciated. This includes:
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Motor vehicles
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Office equipment
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Computer equipment
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Tools and other work equipment
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Machinery
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Fixtures and fittings
Land and property are not usually depreciated. These assets generally increase in value over time, not decrease. This is called appreciation.
Cash and stock are not depreciated.
Tangible assets vs. Intangible assets
Tangible assets can be touched or physically shown, such as machinery or equipment. Intangible assets can't be touched or physically shown, such as a websites, patents, contracts, software, images, and goodwill.
Part 2: Straight-Line Depreciation
Module overview:
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Depreciation methods
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What is straight-line depreciation
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Straight-line depreciation examples
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And more...
Coming soon...
Coming soon...
Part 3: Reducing Balance Depreciation
Module overview:
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What is the reducing balance depreciation method
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How to use the reducing balance method
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Examples of reducing balance depreciation
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And more...
Coming soon...
Coming soon...
Part 4: The Depreciation Journal
Module overview:
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The basics of the fixed asset register
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Accounting for depreciation
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Depreciating by category
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And more...
Coming soon...
Coming soon...
Part 5: Accumulated Depreciation
Module overview:
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What is the reducing balance depreciation method
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How to use the reducing balance method
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Examples of reducing balance depreciation
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And more...
Coming soon...
Coming soon...
Part 6: The Fixed Asset Register
Module overview:
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The basics of the fixed asset register
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Accounting for depreciation
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Depreciating by category
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And more...
Coming soon...
Coming soon...