What is a depreciation expense?

Answer A depreciation expense refers to the process of spreading the cost of an item over the lifetime of the item. To account for depreciation, a company must create an asset on their books and then decr... Read More »

Top Q&A For: What is a depreciation expense

Difference Between Depreciation & Depreciation Expense?

In general usage, depreciation is the decline in an asset's value due to both internal and external causes. In accounting, depreciation is a decline in an asset's value during its useful lifespan, ... Read More »

Is depreciation a cash expense?

Depreciation is not a cash expense. Depreciation matches the cost of an asset over the life of the asset. Also, depreciation is not a cash expense because there is not an exchange of cash as an ass... Read More »

How to Calculate Depreciation Expense?

Determine the original cost of the asset. This is the price you paid for the asset. Let's say you purchased a tractor trailer for $11,000. Determine the useful life of the asset. This is the number... Read More »

How to Expense Real Estate Depreciation With No Rental Income?

You may claim a depreciation expense for your rental property in a year you have no rental income if you plan on keeping the property as a rental income producing asset. You must depreciate your re... Read More »