A depreciation expense has a direct effect on the profit that appears on a company's income statement. The larger the depreciation expense in a given year, the lower the company's reported net income ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

Keeping track of depreciation is an important responsibility for all businesses, large or small. Depreciation expense reflects how much of an asset is used up in a given year, while accumulated ...

Depreciation reflects asset value loss over time, affecting financial statements. Straight-line method spreads depreciation evenly, while accelerated front-loads expenses. Understanding depreciation ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Dr. Melody Bell is a personal finance expert ...

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 ...

Amortization and depreciation are non-cash expenses on a company's income statement. Depreciation represents the cost of capital assets on the balance sheet being used over time, and amortization is ...

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 ...

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.

Assets and expenses are two important accounting concepts elemental to understanding your company’s performance. While both assets and expenses have a debit balance on your business’s financial ...

The “fleet refresh” undertaken by Hertz (NASDAQ:HTZ) coupled with higher operating expenses per transaction and depreciation costs weighed on the company’s profitability, resulting in a loss of $1.44 ...

Companies are facing rising depreciation costs from their massive chip investments, Barclays says. Barclays warns these costs will significantly impact earnings estimates for top tech firms.