Depreciation
Definition
A non-cash expense (also known as non-cash charge) that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring long-term assets over the useful life of the assets. To be clear, this is an accounting expense not a real expense that demands cash. The sum of depreciation expenses of prior years leads to the balance sheet item Accumulated Depreciation.
Investing Essentials
-
Getting Started In Stocks
Investopedia
-
The NASDAQ Dozen
Learning Markets
-
The 10 Commandments Of Investing
Investopedia
-
The Lowdown On Penny Stocks
Investopedia
-
10 Things To consider Before Selecting An Online Broker
Investopedia
-
Start Investing With Only $1,000
Investopedia
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University
Term of the Day
Registration
In the securities market describes process set up pursuant to the Securities Exchange Acts of 1933 and 1934 whereby securities that are to be sold to the public are reviewed by the SEC.
Get the Term of the Day in your inbox!
