When a company purchases an asset it does not expect the asset to retain its current value forever. Instead, the company expects the asset to depreciate, or loose some of its value over time.

Depreciation determines the loss of value of an asset over its useful life. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take ...

It is quite easy to figure out how much cash a small company has on hand. This figure is clearly spelled out in the balance sheet. How the business ended up with this cash, however, requires a deeper ...