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 ...

Accumulated depreciation is the sum of an asset’s depreciation expense. It’s calculated from the start of its use to a specific date. It’s also a contra-asset account. That means it decreases the ...

Amortization and depreciation are non-cash expenses on a company's income statement. Depreciation represents the cost of capital assets on the balance sheet being used over time, and amortization is ...

For tax purposes, depreciation reflects the recognition that certain assets, particularly company equipment, tend to lose value over time. The Internal Revenue Service generally allows you to ...

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.

Business expenses are the ordinary and necessary costs required to run a business. Any money spent in the name of doing business can be categorized as a business expense. Every company incurs expenses ...

Depreciation is the phased allocation of the cost of a fixed asset over its useful life, which is substantially longer than a year. U.S. financial accounting standards require non-profit organizations ...

Assets and expenses are two important accounting concepts elemental to understanding your company’s performance. While both assets and expenses have a debit balance on your business’s financial ...

One reason you might consider investing in rental properties is to save money on federal income taxes. While this may be true, you should fully understand how rental properties and taxes work in order ...