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 ...

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

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 ...

When a company purchases an asset it does not expect the asset to retain its current value forever. Instead, the company expects the asset to depreciate, or loose some of its value over time.

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