Write-Off
Content
Definition
A Write-Off is an accounting action whereby the book value of an asset is declared to be 0, often due to irrecoverability, recognizing the loss in the company`s financial records.
Usage and Context
A write-off sets the book value of an asset to zero, often recognizing a loss in the company’s financial records.
Frequently asked questions
- What is a write-off in accounting? A write-off in accounting is the process of declaring an asset as having no value, typically due to being irrecoverable or obsolete.
- What is a write-off asset? A write-off asset is an asset that is declared worthless and removed from the company`s financial statements as a loss.
- What is write-off book value? A write-off book value happens when an asset`s book value is reduced to zero because it is considered unrecoverable or worthless.
Benefits
A write-off acknowledges a total loss of an asset’s value in financial records, impacting profitability.
Conclusion
A write-off acknowledges a complete loss of an asset’s value in financial statements, impacting profitability.
