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.

Depreciation expense can be a big portion of a company’s total expense. And since expenses decrease income, it affects the overall value of a company. Understanding what it is and the methods can help ...

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 is the system by which your business recoups the purchasing cost of capital assets over time. This accounting method also lowers the value of the majority of these assets with use and ...

Every business incurs expenses. In fact, they’re the everyday costs that come with running a company. These expenses are an integral part of the company’s financial statements—particularly the income ...

It is quite easy to figure out how much cash a small company has on hand. This figure is clearly spelled out in the balance sheet. How the business ended up with this cash, however, requires a deeper ...