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depreciation and amortization

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Your friend Lucy slept through a class in which her professor explained the concepts of depreciation and amortization. Think about cash flow and then write an explanation of the concepts for Lucy. Be sure to cite your sources.

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Your friend Lucy slept through a class in which her professor explained the concepts of depreciation and amortization. Think about cash flow and then write an explanation of the concepts for Lucy. Be sure to cite your sources.

The first term is depreciation. This is a decline in the value of an asset because of use or obsolescence. It is used to spread the cost of an asset over the span of several yeas. From another point of view it is a non-cash expense that reduces the value of asset. Typically, in a factory machinery will decline in value because of usage, wear and tear and the launching of new models of machinery. There are some items that ...

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This posting gives you an in-depth insight into depreciation and amortization. Cash flows for the concepts for Lucy are determined.

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