You should make allowances for her age.

We must make allowances for her youth.

I'll make allowances for your lack of experience.

Depreciation is tangible.

He ought to have made allowances for his age.

We ought to make allowances for his difficult situation.

So we have this depreciation value. This is the truck depreciation.

That's what depreciation does.

Of course, you must make allowances for my daughter, gentlemen.

Allowances teach kids the wrong habits.

Well, you know depreciation, man.

When you employ him, you must make allowances for his youth.

Lizzy, you do not make allowances for differences of situation and temper.

I hope you'll make allowances too, sir.

In judging his work, you should make allowances for his lack of experience.

Instead of retooling I'll call that depreciation.

Does depreciation of the yen give rise to inflation?

This is all a review of the depreciation video.

Really, in my mind, it's very similar to depreciation.

Allowances, by nature, are teaching kids to think about a job.

There are a few lines that make allowances for bending the rules during times of extraordinary threat.

So the depreciation in each of these periods is 20,000.

You'll often hear the words depreciation and amortization used together.

And if we did our depreciation schedule right, or if the

So instead of putting 500,000 there, the depreciation is minus 250,000.

And then we have depreciation, and we want to think a little bit in this video, what does the depreciation do to the cash flow statement?

I don't think we took any depreciation on that new equipment last year.

It would be minus 12,500 in each year, depreciation expense, and we would account for it on the balance sheet.

I make allowances for your youth, but I expect a certain amount of responsibility, instead of which you enslave yourself to this... this...

The fact that this machine right here that cost 50,000 is used for in this example, in the depreciation video, it was usable for two years.

So for example, depreciation, this was factory equipment, and it gets old as I use it, so I spread out its cost.

The company pays me 100,000 yen in various allowances a month in addition to the regular salary.

If you've watched the video on depreciation and amortization, this might even include the depreciation on some of the physical assets they've bought, or maybe the amortization on the rights to the name Super Pizzeria.

And then the other 250,000 essentially went to an expense called depreciation, which is right there.

Amortization is the exact same thing as depreciation, but it applies to things that aren't equipment.

You add the profit to the depreciation, you get a 50,000 operating profit same as the previous year.

And then instead of having an equipment expense, instead of having that expense, they'll have an equipment depreciation expense.

We want to add back this depreciation to the profit so our cash from operations is going to be 50,000.

And let's say we do a straight line depreciation, which means we essentially depreciate the asset evenly over its lifespan.

If you're trying to sell to kids, do you know what their allowances are and where they get their money and how often they get it?

So in any of these periods, the depreciation expense should be added back to the operating profit, to figure out the cash from operations.

And amortizing really just means spreading out the cost of this asset, just like depreciation was spreading out the cost of a physical asset.

100 million dollars interrupting me with TV commercials and magazine ads and Spam and coupons and shelving allowances and spiff all so I could ignore every single message.

And this is just an arguably long winded way of saying that the way you account for this is you spread out the cost over time, over its useful life, and this spreading out is called the depreciation of an asset.

So in our previous examples we've done depreciation so you can imagine, in period 0 we buy a truck for 60,000 and instead of just expensing it in period 0, instead of putting 60,000 expense right over here, we capitalize it.