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 ...

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.

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 ...

Here’s how you can use business asset depreciation to reduce your taxable income and save money. Because business assets such as computers, copy machines and other equipment wear out over time, you ...

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 ...

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 ...

Straight line method spreads an asset's cost evenly over its life, aiding in clear financial planning. Using this method simplifies financial statements, making a company's health easier to assess.

Accounting for depreciation can be a helpful accounting trick when businesses make a major purchase. Depreciation has several different meanings, depending on the context in which it’s being used.