Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Khadija Khartit is a strategy, investment, ...

Accrual-based accounting requires a business to match the expenses it incurs with the revenues it generates each accounting period. Because a long-term asset, such as a piece of equipment, contributes ...

Assets like equipment, vehicles and furniture lose value as they age. Parts wear out and pieces break, eventually requiring repair or replacement. Depreciation helps companies account for the ...

A business wants to deduct expenses against revenues in the most effective fashion possible. But being effective doesn't mean that you always deduct an expense immediately. Depreciation allocates the ...

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 a business acquires an asset to be used in its operations, the cost of the asset is generally not expensed all at once. Rather, the cost is depreciated over a period of time that depends on the ...

What is depreciation? Learn how it works, the main methods and how it impacts your business taxes and accounting.

Depreciation is an accounting methodology that allocates the cost of an asset over its expected useful life. Learn more about how depreciation works and how it affects company financials. blackred ...