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.

Depreciation expense can be a big portion of a company’s total expense. And since expenses decrease income, it affects the overall value of a company. Understanding what it is and the methods can help ...

When a partnership is bought out, a valuation must be conducted to determine the worth of the assets to help arrive at a buyout price. One aspect of determining the value of an asset is factoring its ...

Posting depreciation means to account for depreciation using the proper journal entries. Companies must depreciate their assets annually. Depreciating assets will match the cost to purchase the asset ...

Discover the difference between economic and accounting depreciation and learn how each affects asset valuation and financial decisions.

The most important accounting formulas are practical and intuitive, making them easy to remember and apply. Many, or all, of the products featured on this page are from our advertising partners who ...

Learn what Cash Flow After Taxes (CFAT) is, how to calculate it, and why it's crucial for assessing a company's financial health with step-by-step examples.