When a business acquires an asset to be used in its operations, the cost of the asset is generally not expensed all at once. Rather, the cost is depreciated over a period of time that depends on the ...

When companies invest in assets, they expect those assets to last a certain number of years. Over time, they’re depreciated based on their remaining serviceable life and any potential saleable value ...

The straight-line method is one of several methods of depreciation that a business uses to report the expense of certain assets that last longer than a year, such as equipment or buildings. A business ...

Every day, business managers make capital budget decisions -- choices about whether to invest in projects such as building a factory, upgrading machinery or investing in research and development. But ...

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 ...

When teaching depreciation in Introduction to Accounting, faculty always cover a variety of different depreciation methods, including straight-line depreciation. Next time you teach this topic, build ...

What is depreciation? Learn how it works, the main methods and how it impacts your business taxes and accounting.

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.

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 an accounting methodology that allocates the cost of an asset over its expected useful life. Learn more about how depreciation works and how it affects company financials. blackred ...