Q » What is depreciation and how is it calculated?
01 Nov, 2025
A » Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. It reflects the asset's decreasing value due to use, wear, and obsolescence. Common methods for calculating depreciation include straight-line, declining balance, and units of production. The straight-line method, for example, divides the asset's cost minus its salvage value by its useful life to determine annual depreciation expense.
01 Nov, 2025
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