Results for tag: "Depreciation"

Depreciation in corporate finance is the process of allocating the cost of a tangible asset over its useful life. It is a method of accounting used to spread the cost of an asset over the period of time that it is used. Depreciation is used to account for the decline in value of an asset due to wear and tear, obsolescence, or other factors. Depreciation is a non-cash expense, meaning that it does not involve any outlay of cash. Depreciation is an important concept in corporate finance, as it affects the financial statements of a company. It is used to calculate the net income of a company, as well as the value of its assets. Depreciation is also used to calculate the cost of goods sold, as well as the cost of capital. The depreciation market is composed of companies that provide services related to depreciation, such as asset valuation, asset management, and depreciation accounting. Examples of companies in the depreciation market include Accenture, Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers. Show Less Read more