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.
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depreciation is ...
... part of the Accounting, Global and Investor Relations subjects.
... part of the Accounting, Global and Investor Relations subjects.
... #37 on our list of the most popular terms.
Related Terms
Modified ACRS, double-declining balance depreciation method, Net Domestic Product, pre-depreciation profit, straight line depreciation, Sum-of-the-Years'-Digits Method, ACRS, adjusting entry, AGI, appreciation and
depreciation appears in these other terms
allowance for depreciation
depreciation appears in the definitions of these other terms on BusinessDictionary.com
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