Why is depreciation needed?

Answer Depreciation is a method for recognizing the fact that many assets, such as business equipment, furniture and vehicles, lose their value gradually over time. This gradual loss should be calculated ... Read More »

Top Q&A For: Why is depreciation needed

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 »

Depreciation on a Canon Ti2?

The T2i might be worth $450, however why would you want to sell the $1,400 lens? You can use it on any Canon dSLR you buy to replace the T2i/550D

How to Treat Depreciation?

Debit "Depreciation Expense" and credit "Accumulated Depreciation" each year by your yearly depreciation amount. List "Depreciation Expense" on the company's income st... Read More »

Depreciation & Capex?

A company's top leadership implements depreciation methods for fixed assets, or long-term assets, to allocate asset costs over many periods. Capex, also known as capital expenditure, helps a firm i... Read More »