Depreciation 1. A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes. 2. A decrease in an asset's value caused by unfavorable market conditions. Breaking It Down: 1. For accounting purposes, depreciation indicates how much of an asset's value has been used up. For tax purposes, businesses can deduct the...
Related to "Depreciation" | An Introduction To Depreciation Be aware: companies work hard to make their fundamentals look good. So investors need to exercise judgment when examining... | |
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