Business Terms and Jargon Explained

What is Depreciation

Is the reducing of value of a fixed asset to reflect the passing of time or wear and tear. If the value of a car is 35,000 now. Next year its value will be smaller because of the passing of time. E.g. next year its value may be 25,000 in which case the value would have depreciated by 10,000.

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Term created / updated 2005-07-16 23:12:15

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