The VDB function in Excel is a powerful tool used for calculating the depreciation of an asset over a specified period, using the variable declining balance method. This function allows users to account for the depreciation of assets that lose value at varying rates, making it ideal for financial analysis and accounting. The VDB function takes parameters such as cost, salvage value, life, start period, end period, and an optional factor for the rate of depreciation. Understanding how to effectively utilize this function can significantly aid in accurate financial reporting.
Tag: depreciation
Excel Function – AMORLINC
The AMORLINC function in Microsoft Excel is a specialized financial function designed to calculate the linear depreciation of an asset for each accounting period. It is similar to AMORDEGRC function, but is linearly calculated, while the later is calculated using depreciation coefficient based on the life of the asset. This function is particularly tailored for…