Assets like equipment, vehicles and furniture lose value as they age. Parts wear out and pieces break, eventually requiring repair or replacement. Depreciation helps companies account for the ...

The goal of accounting is to produce fair and accurate statements about a company's financial performance and condition. An underlying principle of accounting is to connect the expenses that are ...

Depreciation in accounting refers to the allocation of a physical asset’s original cost over its life expectancy or useful life. Depreciation is supposed to represent how much value of an asset ...

There are several ways a business can depreciate an asset—namely through straight line or accelerated modes. For an accelerated depreciation schedule, sum-of-years digits is typically the most common.

When you run a small business, depreciating your equipment can help offset the purchase costs through tax savings. When handling the depreciation for your property, you get to choose which method you ...

When businesses buy a large asset for their company, it gets a place as an asset on the balance sheet. But the accounting that happens behind the scenes is much more important than lines on an ...

Depreciation is key in maximizing asset ROI, while minimizing the financial impact of acquisition. How companies choose to write down assets over time differs, yet all write-downs follow a ...