Systematic expensing

Systematic expensing is the charging of an asset to expense over a period of time, using a consistently-applied methodology. This approach is commonly used for depreciation and amortization, where a straight-line, accelerated, or usage-based expensing approach is applied. Systematic expensing is needed in these cases, because there is no evidence of the sale or consumption of an asset that would otherwise trigger a charge to expense.

Related Courses

Bookkeeper Education Bundle 
Bookkeeping Guidebook