If you take a bite into an apple and let it sit, over time, the bite mark will begin to brown. That browning is a lot like "depreciation." Depreciation in accounting means to spread the cost of buying ...

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 ...

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, ...

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 ...

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 ...

An accounting method which reflects the decreasing net book value of a fixed asset over time. This applies a set percentage reduction of the remaining value of the asset each year or accounting period ...