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Understanding Depreciation Basics by ashwini is a document available to read on EtoBox.
Depreciation is a method of accounting for capital expenditures over time by expensing the cost. There are two main reasons to record depreciation: for personal financial bookkeeping to track net worth, and for business financial statements used for tax reporting. The method is the same for both, but the goals differ. Key terminology includes accumulated depreciation, book depreciation, fair market value, net book value, original cost, salvage value, and tax depreciation.
- Author
- ashwini
- Language
- EN