Understanding Depreciation

When the owner of a business or a reader of financial statements understands the concept of depreciation, he can better evaluate the business operation. Depreciation is merely matching a long life asset to its contribution to the product or delivery of service in incremental steps.

How to Purchase Equipment for a Restaurant – Business Finesse

restaurant equipment

Purchasing equipment for a restaurant is a daunting task. There are three phases to successfully purchase restaurant equipment. The first is planning, see How to Purchase Equipment for a Restaurant – Planning Phase for more information about this phase. The second is research, go to How to Purchase Equipment for a Restaurant – Research Phase for an understanding of this phase. This article covers the third phase of purchasing equipment, using business finesse to negotiate the best deal.

The Definition of Fixed Assets

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 related systems (sewage systems, power grids, power plants and dams). In accounting, these assets are recorded to the balance sheet as ‘Fixed Assets’. 

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