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Depreciation is the periodical allocation of a tangible asset\u2019s cost on the balance sheet. Amortization functions in the same way, but is more focused on intangible assets. They are usually physical, fixed, and non-consumable assets such as property, equipment, or infrastructure. Some industries are more capital-intensive than others, such as the oil and gas industry, where companies need to buy drilling equipment.<\/p>\n<\/p>\n
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A company that buys expensive new equipment would account for that investment as a capital expenditure. It would therefore depreciate the http:\/\/tkinterior.ru\/design\/2020\/12\/20\/moy-opyt-s-kislotami-kisloty-dlya-novichka-chto-k-chemu-osia.html<\/a> cost of the equipment throughout its useful life. Companies often incur capital expenditures to invest in their long-term capabilities.<\/p>\n<\/p>\n