What is depreciation and why do accountants appreciate it?

"What is depreciation? Depreciation represents the loss in value of property used in your business due to wear and tear, decay, or obsolescence."-Zev Jankovic, CPA
By: is Speedy CPA
 
Aug. 3, 2012 - PRLog -- What is depreciation? Depreciation represents the loss in value of property used in your business due to wear and tear, decay, or obsolescence.
Depreciation is a ‘non-cash’ expense that reduces your gross revenue. Non-cash means that there is no actual cash outlay paying for depreciation because it was already incurred when the equipment/furniture/fixture/etc was purchased.
Depreciation deductions help you recover the cost of assets such as vehicles by reducing income. Reduced income can mean reduced taxes.

source http://www.speedycpa.com/?p=791

About the author Zev Jankovic, CPA

Zev has 14 years of wide-ranging business experience. Zev has a Bachelors
in Business Administration from the University of Phoenix and a Masters in Accounting
and Information Management from the University of Texas at Dallas (and a member
of Beta Gamma Sigma – Business Honor Society). He is a Certified Public
Accountant (CPA). Zev enjoys spending time with his family, learning Talmud, listening
to music, and hiking in the beautiful Rocky Mountains.
End
Source:is Speedy CPA
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