When a company purchases an asset it does not expect the asset to retain its current value forever. Instead, the company expects the asset to depreciate, or loose some of its value over time.

In accrual basis accounting, when your business purchases a long-lived asset, such as a vehicle, a building or a piece of equipment, you don't immediately write off the full cost as an expense. Rather ...

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 ...

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 ...