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 ...

If you recorded a $1 million expense this month for buying a factory or an office building, it might leave your ledger swimming in red ink. Depreciation lets you expense the purchase price over time ...

Depreciation is a concept and a method that recognizes that some business assets become less valuable over time and provides a way to calculate and record the effects of this. Depreciation impacts a ...