One of the most common statements about new cars is that they depreciate 10%-30% once they're driven off the dealer's lot. This statement, at least according to generally accepted accounting ...

In order to function, every business involves some form of accounting because accounting encompasses buying, selling, banking, assets, liabilities and taxes. The basics of business accounting are the ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Investopedia / Sydney Burns The ...

When a company acquires assets, those assets usually come at a cost. However, because most assets don't last forever, their cost needs to be proportionately expensed based on the time period during ...

When using the cash-basis accounting method, you will record an expense and make an entry into your accounting ledgers when you make an actual cash payment. Similarly, you will recognize income when ...

The Miller and Bahnson article "Duh-preciation: Why is this elephant still in the room?" (Accounting Today, Dec. 13-Jan. 10, 2011, page 17) is a great example of the damage sitting in an ivory tower ...

Now you expense it, now you don't. Any company can instantly boost earnings by playing around with depreciation assumptions. Remember the taxi company we talked about in Part 1 of this article? If ...