What is deprecation means with types

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Accepted Answer

Depreciation refers to the decrease in value of an asset over time due to wear and tear, obsolescence, or other factors.

Depreciation can be classified into three main types: straight-line depreciation, double declining balance depreciation, and units of production depreciation.
Straight-line depreciation allocates an equal amount of depreciation expense each year over the useful life of the asset.
Double declining balance depreciation accelerates depreciation expense in the early years of an asset's life.
Units of production depreciation is based on the actual usage of the asset rather than the passage of time.
Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

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