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 ...

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 ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Khadija Khartit is a strategy, investment, ...

Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and nonprofit organizations. She has conducted in-depth research on social and economic issues ...

Two common ways of calculating depreciation are the straight-line and double declining balance methods. Excel can accomplish both using the SLN function to calculate the straight line -- a standard ...

If you own a rental property and want to take advantage of the tax breaks at your disposal, one thing you’ll definitely want to know is how to calculate depreciation. This nifty accounting trick ...

Please note: This item is from our archives and was published in 2021. It is provided for historical reference. The content may be out of date and links may no longer function. Q. Can you show me how ...

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 ...

Depreciation is a fairly simple concept. When a business owner buys a fixed asset, that asset loses its value over time, and so its most current value must be accounted for on the company’s balance ...

Accelerated depreciation allows businesses to write off the cost of an asset more quickly than the traditional straight-line ...

Property depreciation is the gradual reduction in the value of a property over time due to factors like wear and tear, which can be used for tax deduction purposes. Property depreciation is typically ...