The definition of depreciation is the systematic allocation of the cost of a tangible asset over its useful life. This accounting method reflects the wear and tear, deterioration, or obsolescence of an asset. Depreciation is recorded as an expense on the income statement, reducing taxable income and providing a more accurate representation of an asset’s value over time. Common methods include straight-line, declining balance, and units of production.
CMA Prep Course
CMA Exam Academy is a proven, 16-week per part online coaching program to help you pass the CMA. The Academy’s comprehensive curriculum will help you pass the CMA exam and achieve your dreams of earning 6-figures per year, ascend to the executive ranks and earn the respect from your peers.
