Home
E-Mail
Latest

Depreciation Financial Glossary

What is it? A tax deduction representing a reasonable allowance for exhaustion, wear and tear, and obsolescence, that is taken by the owner of the equipment and by which the cost of the equipment is allocated over time. Depreciation decreases the companys balance sheet assets and is also recorded as an operating expense for each period. Various methods of depreciation are used which alter the number of periods over which the cost is allocated and the amount expensed each period.

Finance Term Definition Added By: Jessica

The Depreciation definition has been viewed 1693 Time(s)!




Send To Friends!

If you'd like to send the Depreciation definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -





We hope you now understand the meaning of Depreciation. If you need any more information on this term, please don't hesitate to contact us.

Other Similar Finance Terms:

Financial Term Closing share price is A companys share price at the end of trading on a particular day.

Financial Term Redemption Amount is The amount that would be redeemed if you held the assets for their full term - to their redemption date.

Financial Term Dependent Student is A student who does not qualify as an independent student and whose parental income and asset information is used in calculating an Expected Family Contribution (see Independent Student).

Financial Term vega is The change in an options price resulting from changes in the volatility of the price for the underlying.

Financial Term Encumbrance Liquidations is Liquidations of encumbrances, usually through payment for goods or services. Drilling down on a purchase order that has been liquidated provides details on the payment transactions.