Outrageously Funny Word Dictionary :: Depreciation

👉 In accounting, a "depreciation" refers to the reduction in value of an asset over time. It is a process where assets are reduced or sold at a loss, and this amount is recorded as a liability in the financial statements. Depreciation can be done through various methods such as straight-line depreciation, declining balance depreciation, or accelerated depreciation.

depreciations

👉 Depreciation refers to the reduction in the value of a tangible asset over its useful life. This process is typically measured as a percentage or as a ratio, and it can be applied to both fixed assets such as buildings and machinery and also to intangible assets such as patents and copyrights. The purpose of depreciation is to minimize the carrying amount of an asset and to increase its value through increased use over time.

depreciation