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    nctays's Avatar
    nctays Posts: 12, Reputation: 1
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    #1

    Nov 2, 2007, 10:07 AM
    Statement of Cash flows
    Explain the concepts of depreciation and amortization. IN layman terms
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Nov 2, 2007, 12:35 PM
    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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