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Depreciation With the exception of land, all fixed assets lose their capacity to yield service. Assets are of use to a company for only a limited number of years, and the cost of each asset is allocated as expense among the years in which it is used. Therefore, a method must be established to transfer the cost of an asset. This expiration of assets is called depreciation. There are two types of asset depreciation : Physical, which Includes wear and tear due to use and Functional, which Includes obsolescence. You can also re-valuate assets. To re-valuate an asset, select the lease data entry window from the accounting section of the outlook bar. Then add a revaluation record in the same manner as other data entry records.
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