What is a Depreciation Schedule?
A depreciation schedule is a breakdown of the depreciation expense calculated and allocated over the span of an asset’s useful life.
What is Sum-of-Years Digits?
Sum-of-years digits is another accelerated depreciation method that applies a percentage of depreciation based on the years left in an asset’s useful life.
What is Straight-Line Depreciation?
Straight-line depreciation is calculated by subtracting the salvage value from the asset’s cost and dividing it by the years estimated for its useful life.
What is Accumulated Depreciation? Definition and Example
Accumulated depreciation is the sum of an asset’s depreciation expense. For an investor to properly value a company, you need to understand what it means.
4 Depreciation Expense Methods with Formulas and Examples
Understanding what depreciation expense is and the methods can help you determine if a company is a good investment opportunity. Here’s 4 common methods.