Topic:
Concepts Of Depreciation And Amortization
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Concepts of Depreciation and Amortization
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Tangible assets are depreciated and intangible assets are amortized. In both cases the government determines the useful life of an asset to the owner and charges off a portion of the cost each during that life expectancy. In most cases in w...
The idea with depreciation is this.... Assume you buy a big piece of machinery for your business for $5,000. You expect this to last 5 years. You can't expense $5,000 right now because that will ruin your profit, and you will benefit from t...
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