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Fundamental
Depreciation
Expense recognition for tangible assets over useful life
Definition
Depreciation allocates the cost of tangible assets over their useful life through systematic expense recognition. Methods include straight-line (equal amounts) and declining balance (accelerated). It reduces taxable income but doesn't involve actual cash outflows.
Related Topics
#accounting
#tangible assets
#expense recognition
#tax shield
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Category: Fundamental
Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.
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