A financial concept addressing the cost associated with big ticket items including technology equipment, vehicles,and real estate. Often money is raised through the sale of stock and/or borrowing money from a financial institution. This term ties to other terms such as ‘Debt Service’, ‘Interest on Debt’ and so on.
Depreciation is the process of allocating the initial capital outlay for fixed asset purchases over time to the income statement. The basic principle is that any fixed asset has a predetermined lifetime based on time, […]