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Depreciation, Amortization, and Depletion Explanation (Financial Accounting Tutorial #57)
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What is depreciation? Well it is a concept that provides methods to allocate the cost of a long lived asset over accounting periods. This way it matches expenses with the revenues the long term asset helped generate. This way it complies with the matching principle and also fairly allocates the cost to each respective period (depending on whether you use straight line method or the declining balance).
The differences between depreciation, amortization and depletion follow!
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What is depreciation? Well it is a concept that provides methods to allocate the cost of a long lived asset over accounting periods. This way it matches expenses with the revenues the long term asset helped generate. This way it complies with the matching principle and also fairly allocates the cost to each respective period (depending on whether you use straight line method or the declining balance).
The differences between depreciation, amortization and depletion follow!
Website: notepirate.com
Follow us on Facebook: facebook.com/pages/Note-Pirate/514933148520001?…
Follow us on Twitter: twitter.com/notepirate
We appreciate all of the support you guys have given us. Be apart of the mission to help us reach more students by subscribing, thumbs upping and adding the videos to your favorites!
** Notepirate is privately owned and exclusive to Notepirate.com.**
About this tutorial
Notepirate published this 7:21 video tutorial on November 6, 2014. It has been watched 30,950 times on YouTube.
- Channel
- Notepirate
- Category
- Education
- Duration
- 7:21
- Published
- November 6, 2014
- Views
- 30,950
- Likes
- 185
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This tutorial in other languages
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