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 ...

When a business buys a long-term asset, it records a portion of the asset's cost as a depreciation expense on the income statement each period to account for wear and tear. With the ...

Assets like equipment, vehicles and furniture lose value as they age. Parts wear out and pieces break, eventually requiring ...

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 ...

When calculating the capital outlay of a business, you are seeking the balance of cash expenditures - payments made over the span of 12 months or more - or the allocation of funds toward the ...