depreciation
Definition 1
A noncash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. Most assets lose their value over time (in other words, they depreciate), and must be replaced once the end of their useful life is reached. There are several accounting methods that are used in order to write off an asset's depreciation cost over the period of its useful life. Because it is a non-cash expense, depreciation lowers the company's reported earnings while increasing free cash flow.
Definition 2
A decline in the value of a given currency in comparison with other currencies. For instance, if the U.S. dollar depreciates against the Euro, buyers would have to pay more dollars in order to obtain the original amount of euros before depreciation occurred.
A noncash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. Most assets lose their value over time (in other words, they depreciate), and must be replaced once the end of their useful life is reached. There are several accounting methods that are used in order to write off an asset's depreciation cost over the period of its useful life. Because it is a non-cash expense, depreciation lowers the company's reported earnings while increasing free cash flow.
Definition 2
A decline in the value of a given currency in comparison with other currencies. For instance, if the U.S. dollar depreciates against the Euro, buyers would have to pay more dollars in order to obtain the original amount of euros before depreciation occurred.
Related Terms
Mentioned in these terms
Related Terms on BusinessDictionary
declining balance depreciation
sum of the years digits (SYD) depreciation
units-of-output depreciation
double declining-balance depreciation
depreciation to fixed assets ratio
accelerated cost recovery system (ACRS)
amortized cost
return on investment (ROI)
noncash item
pre-tax debt service coverage
gross book value
business receipts
sale and buyback
capacity overhead expense
salvage value
capital allowance
leveraged lease
split depreciation
statement of sources and application of funds
capital expenditure to sales ratio
plant ledger
operating margin
capitalization (cap)
market value policy
depreciation to sales ratio
net investment
accelerated depreciation
tax write off
accounting change
diminishing balance depreciation
technology cost
return of capital
out of pocket cost
accounting policies
dirty float
units-of-production depreciation
payables to operating expenses ratio
earnings before interest, taxes, depreciation, and amortization (EBITDA)
user cost
cash flows from operating activities
period cost
valued policy
recovery period
adjusted basis value
equity sharing
indirect method cash flow statement
post tax debt-service coverage
cost approach
production unit method of depreciation
application of funds
depreciable cost
sum of the years digits (SYD) depreciation
units-of-output depreciation
double declining-balance depreciation
depreciation to fixed assets ratio
accelerated cost recovery system (ACRS)
amortized cost
return on investment (ROI)
noncash item
pre-tax debt service coverage
gross book value
business receipts
sale and buyback
capacity overhead expense
salvage value
capital allowance
leveraged lease
split depreciation
statement of sources and application of funds
capital expenditure to sales ratio
plant ledger
operating margin
capitalization (cap)
market value policy
depreciation to sales ratio
net investment
accelerated depreciation
tax write off
accounting change
diminishing balance depreciation
technology cost
return of capital
out of pocket cost
accounting policies
dirty float
units-of-production depreciation
payables to operating expenses ratio
earnings before interest, taxes, depreciation, and amortization (EBITDA)
user cost
cash flows from operating activities
period cost
valued policy
recovery period
adjusted basis value
equity sharing
indirect method cash flow statement
post tax debt-service coverage
cost approach
production unit method of depreciation
application of funds
depreciable cost
reducing balance
reducing balance depreciation
free cash-flow
inventory cost
available earnings
gross domestic product (GDP)
private cost
replacement cost method
balancing allowance
inventory carrying cost
straight line depreciation
cost recovery
labor intensive
sale and leaseback
depreciation rate
true lease
intellectual capital
tax shield
capitalized cost
capital lease
accounting procedure
economic life
tax basis
accumulated depreciation
fixed expenses
wasting asset
replacement cost
financial model
internal financing
tax shelter
cash flow statement
fixed cost
capital asset
operating cash flow
schedule
basis
fixed asset
land
operating expenses
risk
reducing balance depreciation
free cash-flow
inventory cost
available earnings
gross domestic product (GDP)
private cost
replacement cost method
balancing allowance
inventory carrying cost
straight line depreciation
cost recovery
labor intensive
sale and leaseback
depreciation rate
true lease
intellectual capital
tax shield
capitalized cost
capital lease
accounting procedure
economic life
tax basis
accumulated depreciation
fixed expenses
wasting asset
replacement cost
financial model
internal financing
tax shelter
cash flow statement
fixed cost
capital asset
operating cash flow
schedule
basis
fixed asset
land
operating expenses
risk
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