Overview of depreciation | Depreciation accounting
Accounting Tools
JANUARY 13, 2024
What is Depreciation? Depreciation is the systematic reduction of the recorded cost of a fixed asset. Examples of fixed assets that can be depreciated are buildings, furniture, and office equipment. The only exception is land, which is not depreciated (since land is not depleted over time, with the exception of natural resources). The reason for using depreciation is to match a portion of the cost of a fixed asset to the revenue that it generates; this is mandated under the matching principle ,
40 
Let's personalize your content