Discover how different depreciation methods affect long-term asset values and short-term earnings, plus key assumptions that ...

Discover the difference between economic and accounting depreciation and learn how each affects asset valuation and financial decisions.

When a company purchases an asset it does not expect the asset to retain its current value forever. Instead, the company expects the asset to depreciate, or loose some of its value over time.

In accrual basis accounting, when your business purchases a long-lived asset, such as a vehicle, a building or a piece of equipment, you don't immediately write off the full cost as an expense. Rather ...

Depreciation determines the loss of value of an asset over its useful life. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take ...