Accumulated Depreciation is the total amount of depreciation expense that has been recorded for an asset to date. It represents the wear and tear or reduction in value of the asset over its useful life.
Amortization of Deferred Charges refers to the procedure that allocates the cost of intangible assets to accounting periods, similar to how depreciation handles tangible assets. This concept is especially relevant for costs incurred to arrange loans and leases, which are typically written off over the term of the agreement.
GAAP (Generally Accepted Accounting Principles) constitutes a common set of accounting standards, principles, and procedures that companies and other entities use to compile their financial statements.
