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Home > Business & Careers > Accounting   »   Statement of Cash flows

 
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Old Nov 2, 2007, 09:07 AM
nctays
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Statement of Cash flows

Explain the concepts of depreciation and amortization. IN layman terms

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Old Nov 2, 2007, 11:35 AM   #2  
CaptainForest
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I buy a car for 20,000. Do I expense it all at once?

No, I will spread the cost out of the life of the car.

The car will last for 4 years.

Therefore I expense 5,000 each year….amortization.
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