Impairment vs Depreciation – All You Need to Know
Impairment and Depreciation are two very important concepts in accounting. Both concepts apply to assets, especially fixed assets. And both refer to the drop… Read Article
Depreciation
Accumulated Depreciation – Meaning, Accounting and More
Accumulated depreciation is the total or cumulative depreciation amount of an asset. That is to say; this accumulation is since its purchase by the… Read Article
Sum of the Years Digits Depreciation
As the name suggests, the sum of the year’s digits depreciation or SYD is a method to calculate depreciation. Since this method accelerates the… Read Article
MACRS – Meaning, Importance, Calculation And More
MACRS, or the modified accelerated cost recovery system, is the system of calculating tax deductions on depreciation in the United States. Under this, the… Read Article
Double Declining Depreciation
Double Declining Depreciation MethodThe double-declining depreciation is an accelerated depreciation method where the depreciation expense amount decreases with the age of the asset. The… Read Article
Straight Line Depreciation
The straight-line depreciation method is the simplest method for calculating an asset’s loss of value or, in other words, depreciation over a period of… Read Article
Unit of Production Depreciation
The decrease in the value of an asset due to normal wear and tear, time effect, obsolescence, etc., is called depreciation. Amortization is also… Read Article
Accelerated Depreciation Method
The value of a fixed asset or long-term asset reduces due to wear and tear. This reduction of the value of the asset is… Read Article
Depreciation
Depreciation is a very important and real operating expense. Although it is a non-cash expense and does not require any current cash outflow, nonetheless… Read Article
What is Expense? – Definition and Meaning
Expenses can be defined as “Any cost that a company bears in an attempt to maximize its revenues, and thereby its profits.” It is… Read Article