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• 31 Jul
  

  Why is depreciation part of the cost?

  Alright, folks! We're diving into the whacky world of depreciation - yes, it’s as thrilling as a rollercoaster ride! Depreciation is like the apple of the accounting world's eye, because it's the method they use to spread out the cost of an asset over its useful life. Think of it like an aging rockstar, less useful with each passing year. It's a bittersweet symphony, but the cost of the asset doesn’t just disappear after purchase. Instead, it gets its moment in the spotlight, spread out like a peacock's tail, over time. So, depreciation is part of the cost because it's the way we account for the value an asset loses as it ages and we use it. That's it, folks, depreciation - the superstar of costs!
  By: Maximus Stronghammer depreciation cost asset value financial accounting 0 Comments Read More
• 22 Jul
  

  How to calculate depreciation?

  In my latest blog post, I explained how to calculate depreciation, a process crucial for both businesses and individuals. I introduced the concept of depreciation, which is the reduction in the value of an asset over time. Then, I covered the two common methods to calculate it: the straight-line method and the declining balance method. I also provided detailed examples for each method to help you better understand how they work. Remember, understanding and tracking depreciation is essential for accurate financial reporting and tax deductions.
  By: Maximus Stronghammer depreciation calculation asset value financial accounting depreciation methods 0 Comments Read More