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 ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

What is depreciation? Learn how it works, the main methods and how it impacts your business taxes and accounting.

If you take a bite into an apple and let it sit, over time, the bite mark will begin to brown. That browning is a lot like "depreciation." Depreciation in accounting means to spread the cost of buying ...

The sinking fund method is one of several advanced methods of depreciation that are more complex than the familiar straight-line and declining-balance methods. The method is seldom used, because it's ...

Accumulated depreciation is the sum of an asset’s depreciation expense. It’s calculated from the start of its use to a specific date. It’s also a contra-asset account. That means it decreases the ...

Understanding depreciation can help you lower taxes, plan smarter finances, and see the true value of what you own over time.