Expensing a truck leads to inconsistent performance | Finance & Capital Markets | Khan Academy

Expensing a truck leads to strange looking income statement. Created by Sal Khan.

Watch the next lesson:
https://www.khanacademy.org/economics-finance-domain/core-finance/accounting-and-financial-stateme/depreciation-amortization-tut/v/depreciating-the-truck?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets

Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/accounting-and-financial-stateme/financial-statements-tutorial/v/fair-value-accounting?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets

Finance and capital markets on Khan Academy: How do you account for things that get “used up” or a cost that should be spread over time. This tutorial has your answer. Depreciation and amortization might sound fancy, but you’ll hopefully find them to be quite understandable.

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