One of those misunderstood areas of accounting is depreciation. The basic concept is to match the original purchase price of a major asset to its utility throughout its lifetime. There are multitude of different methods incorporated to fulfil this goal.
When it comes to depreciation, no two businesses are alike. Unlike traditional straight line depreciation where the asset value is cost out to depreciation expense in equal increments over a given life expectancy, accelerated depreciation […]
There are various forms of depreciation used in the small business world. In general, depreciation is not required but it is advisable. So a small business owner should understand depreciation and the various forms of […]
Any tangible item not consumed within one accounting cycle (typically a year) and providing long term utility is referred to as a Fixed Asset. Traditional images include manufacturing equipment, tools, transportation vehicles, buildings and utility […]
The Internal Revenue Service sets the depreciation allowance based on the Code as promulgated by Congress. The most commonly referenced section is 179. This is a form of accelerated depreciation allowing the small business owner […]
In the world of accounting, there are two types of expenses on the reports widely misunderstood. They are depreciation and amortization. I will try to help the novice gain an understanding of depreciation in this […]