Accumulated depreciation is the sum of an asset’s depreciation expense. It’s calculated from the start of its use to a specific date. It’s also a contra-asset account. That means it decreases the ...

An adjusted trial balance provides a listing of ending balances for all accounts after the adjusting entries are prepared. The goal of adjusting the entries is to correct errors made within previous ...

As a business owner, you need to keep an up-to-date valuation of your business and its assets. One adjustment that you need to make every year is to account for the annual depreciation of your total ...

When a business acquires an asset to be used in its operations, the cost of the asset is generally not expensed all at once. Rather, the cost is depreciated over a period of time that depends on the ...

A balance sheet is a financial document that presents the financial status of a business through an accounting of a company’s assets, liabilities, and equity. A balance sheet, when looked at with a ...

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 ...

Joseph Nguyen is a contributing author at Investopedia and a research analyst with experience at a securities brokerage firm. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society ...

Balance sheets consist of assets, liabilities, and shareholders' equity, revealing financial health. Shareholders' equity equals assets minus liabilities and reflects theoretical investor value if a ...