Depreciation allows a business to write off the loss it experiences through the wearing down of assets. There are many ways of figuring depreciation, but the straight-line method is the simplest and the most popular. Generally, depreciation is calculated using the asset's cost, residual value, and useful life.
Types of depreciation
- Depreciation Accounting
- Straight-line Depreciation
- Unit-of-Production Depreciation
- Depreciation Expense
- Hours-of-Service Depreciation
- Accelerated Depreciation