What do you mean by depreciation

Question

Accepted Answer

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

Depreciation is a method used in accounting to allocate the cost of an asset over its useful life.
It represents the reduction in the value of an asset on the balance sheet.
Depreciation can be calculated using various methods such as straight-line, declining balance, or units of production.
For example, a company purchases a machine for $10,000 with an estimated useful life of 5 years. Using straight-line depreciation, the annual depreciation expense would be $2,000.
Depreciation is important for financial reporting and tax purposes, as it helps in determining the true value of assets and the allocation of expenses.

Accepted Answer

I have 3 years of experience in property and casualty as a legal bill reviewer in cognizant.

Accepted Answer

Decrease in the value of assets due to wear and tear, passage of time,and by usage . The actual fair value of assets decrease due to these things is called as depreciation

What do you mean by depreciation

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