Learn how to calculate the written-down value (WDV) to determine the current worth of an asset after depreciation or amortization, also known as book value.

Amortization and depreciation are non-cash expenses on a company's income statement. Depreciation represents the cost of capital assets on the balance sheet being used over time, and amortization is ...

The goal of accounting is to produce fair and accurate statements about a company's financial performance and condition. An underlying principle of accounting is to connect the expenses that are ...

A company's net cash inflow is composed of sales, minus total fixed costs and total variable costs. Total fixed costs are those that do not fluctuate with output, and include annual depreciation costs ...

The book value of a company is the difference between that company's total assets and its total liabilities, as shown on the company's balance sheet. Book value represents the carrying value of assets ...

When teaching depreciation in Introduction to Accounting, faculty always cover a variety of different depreciation methods, including straight-line depreciation. Next time you teach this topic, build ...

Don’t get obsessed with accounting for every penny. Ballpark values will do, especially when it comes to tangible, illiquid items like collections. See below for definitions of terms in this ...