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Depreciation and Amortization

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Depreciation is a reduction in the value of an asset with the passage of time, due in particular to wear and tear. Amortization is the deduction of expenses over a specific period of time. Depreciation and amortization might sound complicated, but you'll find them to be quite understandable after viewing this tutorial.

The first part explores an example of expensing a truck that leads to inconsistent performance.

 

Learn about spreading expense while depreciating.

 

In this part of the tutorial you will understand how depreciation is reflected in cash flow. 

 

The final part of the tutorial compares amortization and depreciation.

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