Definition: A method used to expense an asset over its useful life. 

See Also: Depreciation , balance sheet , expense, basis , adjusted basis .

Tips: An asset can either be expensed or capitalized. If it is expensed, it will show up as an expense on the Profit & Loss Statement. If it is capitalized, it will show up as an asset on the balance sheet and then depreciated, which shows up as “depreciation” on the Profit & Loss Statement.