Over time, the assets a company owns lose value, which is known as depreciation. As the value of these assets declines over time, the depreciated amount is recorded as an expense on the balance sheet.

A ratio of debt to equity is calculated by dividing total debt by the amount of shareholders' equity, found near the bottom ...

Depreciation is a fairly simple concept. When a business owner buys a fixed asset, that asset loses its value over time, and so its most current value must be accounted for on the company’s balance ...

Assets like equipment, vehicles and furniture lose value as they age. Parts wear out and pieces break, eventually requiring repair or replacement. Depreciation helps companies account for the ...

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 ...

Simply stated, a balance sheet is a statement of your business' worth: a snapshot of your business position on a given day, usually calculated at the end of the month or quarter. It is a listing of ...

When you review your small business's balance sheet, it's important to compare accounts across multiple years to identify any trends. To make this process easier, you can convert each account's dollar ...