depreciation Definition
- 1a reduction in the value of an asset over time, due in particular to wear and tear
- 2a decrease in the value of a currency relative to other currencies
Using depreciation: Examples
Take a moment to familiarize yourself with how "depreciation" can be used in various situations through the following examples!
Example
The depreciation of the car was so significant that it was no longer worth repairing.
Example
The depreciation of the dollar against the euro has made travel to Europe more expensive.
Example
The company's financial report showed a significant depreciation of assets.
Example
The depreciation of the house's value was due to its location.
depreciation Synonyms and Antonyms
Synonyms for depreciation
- devaluation
- reduction
- diminution
- loss
- downgrading
Antonyms for depreciation
Phrases with depreciation
a method of calculating the value of an asset that allows for greater deductions in the early years of the asset's life
Example
The company used accelerated depreciation to reduce its tax liability.
a table or chart that shows the amount of depreciation that will be taken each year on an asset
Example
The accountant created a depreciation schedule for the new equipment.
straight-line depreciation
a method of calculating the value of an asset that assumes an equal amount of depreciation each year
Example
The company used straight-line depreciation to calculate the value of its assets.
Origins of depreciation
from Late Latin 'depretiationem', meaning 'a lowering'
Summary: depreciation in Brief
The term 'depreciation' [dɪˌpriːʃiˈeɪʃən] refers to the reduction in value of an asset over time, due to wear and tear or other factors. It can also refer to a decrease in the value of a currency relative to other currencies. Examples include the depreciation of a car or house, and the depreciation of the dollar against the euro. Phrases like 'accelerated depreciation' and 'depreciation schedule' denote methods of calculating depreciation.
