Depreciation

A Comparison of Depreciation Methods: Income and Tax Consequences of Various Accounting Practices

Depreciation is something that any business organization or entity must deal with on an ongoing basis for a variety of reasons. All consumers experience the effects of depreciation, in fact, though it is typically not necessary for average consumers to explicitly and consciously account for the depreciated values of their assets. For businesses, however, such depreciation is often mandated as a means of determining an accurate valuation for a company's assets and the degree of shareholder worth and profit potential that these assets might generate (Albrecht et al. 2008). Most assets that companies use in their day-to-day operations such as facilities, equipment furniture, vehicles, computers, etc., begin losing value the moment they are purchased and start being used, and all with a financial interest in a given business organization have a right to know the actual...
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