![]() |
|
Financial Terms | |
Depreciation expense |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: inventory, credit, stock trading, tax advisor, inventory control, payroll, investment, accounting, |
Definition of Depreciation expenseDepreciation expenseAn expense account that represents the portion of the cost of an asset that is being charged to expense during the current period.
Related Terms:accelerated depreciation(1) The estimated useful life of the fixed asset being depreciated is accumulated depreciationA contra, or offset, account that is coupled Capital Cost Allowance (CCA)The annual depreciation expense allowed by the Canadian Income Tax Act. Accelerated depreciationAny depreciation method that produces larger deductions for depreciation in the Accelerated depreciationAny of several methods that recognize an increased amount Accrued expenses payableexpenses that have to be recorded in order for the financial statements to be accurate. Accrued expenses usually do not involve the receipt of an invoice from the company providing the goods or services. accrued expenses payableThe account that records the short-term, noninterest- ![]() Accumulated depreciationA contra-fixed asset account representing the portion of the cost of a fixed asset that has been previously charged to expense. Each fixed asset account will have its own associated accumulated depreciation account. Accumulated depreciationThe sum total of all deprecation expense recognized to date Annual fund operating expensesFor investment companies, the management fee and "other expenses," Current Income Tax ExpenseThat portion of the total income tax provision that is based on Deferred Income Tax ExpenseThat portion of the total income tax provision that is the result DepreciationA non-cash expense that provides a source of free cash flow. Amount allocated during the DepreciationA technique by which a company recovers the high cost of its plant-and-equipment assets gradually during the number of years they’ll be used in the business. depreciation can be physical, technological, or both. DepreciationAn expense that spreads the cost of an asset over its useful life. depreciationRefers to the generally accepted accounting principle of allocating DepreciationReduction in value of fixed or tangible assets over some period DepreciationBoth the decline in value of an asset over time, as well as the gradual Depreciationa) Of capital stock: decline in the value of capital due to its wearing out or becoming obsolete. DepreciationThe systematic and rational allocation of the cost of property, plant, and equipment DepreciationAmortization of fixed assets, such as plant and equipment, so as to allocate the cost over their depreciable life. Depreciation AllowancesTax deductions that businesses can claim when they spend money on investment goods. Depreciation tax shieldThe value of the tax write-off on depreciation of plant and equipment. depreciation tax shieldReduction in taxes attributable to the depreciation allowance. Double-declining-balance depreciationMethod of accelerated depreciation. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working EBDDT - Earnings before depreciation and deferred taxesThis measure is used principally by ExpenseThe reduction in value of an asset as it is used for current company operations. Expense ratioThe percentage of the assets that were spent to run a mutual fund (as of the last annual ExpensedCharged to an expense account, fully reducing reported profit of that year, as is appropriate for ExpensesThe costs incurred in buying, making or producing goods and services. ExpensesCosts involved in running the company. Fixed ExpensesCost of doing business which does not change with the volume of business. Examples might be rent for business premises, insurance payments, heat and light. fixed expenses (costs)expenses or costs that remain the same in amount, GENERAL-AND-ADMINISTRATIVE EXPENSESWhat was spent to run the non-sales and non-manufacturing part of a company, such as office salaries and interest paid on loans. Income Tax ExpenseSee income tax provision. management expense ratio (MER)The total expenses expressed as an annualized percentage of daily average net assets. MER does not include brokerage fees and commissions, which are also payable by the Fund. Office expenseThe amount of expense incurred for the general operation of an office. Operating expenseAny expense associated with the general, sales, and administrative OPERATING EXPENSESThe total amount that was spent to run a company this year. Operating ExpensesThe amount of money the company must spend on overhead, distribution, taxes, underwriting the risk and servicing the policy. It is a factor in calculating premium rates. Payroll expenseThe amount paid to employees for services rendered; synonymous with salary expense and wage expense. Payroll tax expenseThe amount of tax associated with salaries that an employer pays to governments (federal, state, and local). Prepaid expenseAn expenditure that is paid for in one accounting period, but which Prepaid expensesexpenses that have been paid for but have not yet been used up; examples are prepaid insurance and prepaid rent. Rent expenseThe amount of expense paid for the use of property. revenue-driven expensesOperating expenses that vary in proportion to Salary expenseThe amount paid to employees for services rendered; synonymous with payroll expense and wage expense. SELLING EXPENSESWhat was spent to run the sales part of a company, such as sales salaries, travel, meals, and lodging for salespeople, and advertising. Straight line depreciationAn equal dollar amount of depreciation in each accounting period. STRAIGHT-LINE DEPRECIATIONA depreciation method that depreciates an asset the same amount for each year of its estimated straight-line depreciationThis depreciation method allocates a uniform straight-line depreciationConstant depreciation for each year of the asset’s accounting life. Sum-of-the-years'-digits depreciationMethod of accelerated depreciation. tax benefit (of depreciation)the amount of depreciation deductible for tax purposes multiplied by the tax rate; tax shield (of depreciation)the amount of depreciation deductible unit-driven expensesexpenses that vary in close proportion to changes VARIABLE EXPENSESThose that vary with the amount of goods you produce or sell. These may include utility bills, labor, etc. variable expensesexpenses that change with changes in either sales volume Wage expenseThe amount paid to employees for services rendered; synonymous with salary expense and payroll expense. Adjusted EBITDAConventional earnings before interest, taxes, depreciation, and amortization (EBITDA) revised to exclude the effects of mainly nonrecurring items of revenue or gain and expense or loss. amortizationThis term has two quite different meanings. First, it may cash flow from operating activities, or cash flow from profitThis equals the cash inflow from sales during the period minus the cash Net incomeThe company's total earnings, reflecting revenues adjusted for costs of doing business, Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |