A provision for depreciation and bad debt are subjective. Depreciation is subjective. The depreciation is the reduction in the value of an asset due to usage, passage of time, wear and tear, technological outdating or obsolescence, depletion or other such factors. Depreciation is the historical or purchase cost of an asset across its useful life. The depreciation, when in technical term is the allocation of the historical cost of an asset across time periods. There is no relationship with market price and value of the asset. For example, everything can cause depreciation - Vehicle can use 10 years in Singapore but 20 years in Myanmar. Drive Honda can last for 15 years in Singapore but 20 years in Myanmar. Computer can use 2 years in Singapore but 5 years in Malaysia. The quality, and life of an asset depends on people. Some people can change in 2 years and some can change in 5 years. Bad debt is real. For example, customer becomes bankrupt. Bad debt......

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Title: Business Accounting
Approximate Word Count: 881
Approximate Pages: 4 (250 words per double-spaced page)

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