Definition, Meaning & Synonyms
depreciation
Noun
/dɪˌpriː.ʃiˈeɪ.ʃən/
Definition
The reduction in the value of an asset over time, usually due to wear and tear or outdated technology.
Examples
- The depreciation of the car was evident after five years of use.
- Companies often account for depreciation when calculating their assets’ value.
- Depreciation impacts companies’ financial statements significantly.
Meaning
Depreciation refers to the decrease in the financial value of physical assets, often as a result of usage or age.
Synonyms
- devaluation
- decline
- diminution
