Finance / July 12, 2018 / Alicia Franklin
A current liability is an obligation that must be repaid within the current period or the next year whatever is longer. In other words, it’s a short-term loan or long-term debt that will become due in the next 12 months and require payment of current assets.
There are many methods of distribution depreciation amount over its useful life. The following are some of the widely used methods. The total amount of depreciation for any asset will be identical in the end no matter which method of depreciation is chosen; only the timing of depreciation will be altered. Keep in mind that accelerated depreciation methods (such as declining balance or sum of the years' digits) can artificially reduce profit in the near term followed by higher profits in later terms, which can influence reported cash flows.
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