Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Toby Walters is a financial writer, investor, and lifelong learner.

Please note: This item is from our archives and was published in 2021. It is provided for historical reference. The content may be out of date and links may no longer function. Q. Can you show me how ...

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 ...

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 ...

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 ...

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, ...

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 ...

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 ...

Accounting for depreciation can be a helpful accounting trick when businesses make a major purchase. Depreciation has several different meanings, depending on the context in which it’s being used.

When depreciating an asset, companies need to consider either a straight-line or accelerated schedule. When choosing the latter, the double-declining balance mode of depreciation is among the most ...