One of the most common statements about new cars is that they depreciate 10%-30% once they're driven off the dealer's lot. This statement, at least according to generally accepted accounting ...

John Parker is a business writer with 20+ years of experience as a business executive specializing in accounting and finance. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society ...

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

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.

Depreciation and amortization are two methods used in accounting to assess the decrease in the value of assets over time. While depreciation is similar to amortization, they differ in the type of ...

Depreciation is a word with so many meanings that it is all but meaningless. In asset management, depreciation must be defined carefully each time it is used, and there must be a full understanding of ...

In order to function, every business involves some form of accounting because accounting encompasses buying, selling, banking, assets, liabilities and taxes. The basics of business accounting are the ...

When companies invest in assets, they expect those assets to last a certain number of years. Over time, they’re depreciated based on their remaining serviceable life and any potential saleable value ...

Now you expense it, now you don't. Any company can instantly boost earnings by playing around with depreciation assumptions. Remember the taxi company we talked about in Part 1 of this article? If ...