Income is perhaps the single most important measurement of a business's success in running its operations, but it is inaccurate and misleading unless the business records revenues and expenses in the ...

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 ...

Peter Gratton, Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, risk management, and public policy. Peter began covering markets at Multex (Reuters) ...

Accepted accounting guidelines state that, whenever possible, expenses should be reported during the same accounting period in which revenue was earned. Depreciation allows a company to deduct costs, ...

Depreciation is the recovery of the cost of a physical asset, like property or equipment, over multiple years. It allows companies to spread out the cost of some expenses, reduce taxable income and ...

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 ...

Andriy Blokhin has 5+ years of professional experience in public accounting, personal investing, and as a senior auditor with Ernst & Young. Andy Smith is a Certified Financial Planner (CFP®), ...

Fixed assets are assets that are staples of your business, like property, equipment, and plants. These assets are tangible and depreciable, and typically last for longer than one year. Understanding ...

New rules regarding cost segregation have made 100% bonus depreciation permanent for commercial properties. This allows ...

This is a preview. Log in through your library . Abstract Previous analyses of depreciation have resulted in conflicting claims and evidence concerning the depreciation patterns of durable assets. We ...