Accounting 101: Depreciation

November 30, 2010

When you buy equipment that you can use for years, you spread that cost over the useful life of the asset rather than expense the entire amount when purchased.

Example: Purchase a computer for $1,800 with a useful life of 3 years: your monthly expense will be $50 [$1,800/36 months]

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One Response to “Accounting 101: Depreciation”

  1. adnandp Says:

    weldone good job,,,, keep it up….


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