What is depreciation?

What is Depreciation? Understand Depreciation in Simple Words. (PDF Inside)

BySushanta Maiti

Depreciation is an accounting practice that recognizes the gradual wearing down or obsolescence of assets. Instead of considering their purchase price as a one-time expense, it spreads that cost over their estimated useful life. This allows businesses to accurately represent their financial health and profitability, reflecting the declining value of their assets and preventing misrepresentation of their real worth.

Purchase Price Allocation thumbnail

Purchase Price Allocation (PPA): Definition, Components, Example, and PDF

BySushanta Maiti

A purchase price allocation is primarily involved in accounting purposes, but it also gives a useful evaluation of the components that make up goodwill. In this process, the purchase price was allocated to all the tangible net assets, such as working capital and machinery, with the rest allocated entirely to goodwill. Definition Purchase price allocation…