Introducing depreciation


show more Introducing depreciation provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2007: Financial Analysis show less
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Introducing depreciation

Almost without exception, companies purchase physical assets to help them do business. Whether the purchases are relatively small such as computers and printers or large such as company cars and office buildings, these assets will go down in value over time. Reduction in value due to age is called depreciation. There is a difference between the physical life of an asset and the economic life of an asset. Physical life is the amount of time an asset will perform its function, i.e., how long will a building be standing and safe to occupy or a printer will turn out page of reasonable quality.

Economic life on the other hand refers to how long the asset will perform its function until it is rendered obsolete by wear and tear or falls so far behind the current technology that it's worth no more than what it could be sold for as scrap. According to the Modified Accelerated Cost Recovery System, an office building has an economic life of 39 years, while our computer or printer will have an e...

Introducing depreciation
Video duration: 2m 1s 2h 18m Intermediate

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Introducing depreciation provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2007: Financial Analysis

Subject:
Business
Software:
Excel
Author:
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