Depreciation meaning: Depreciation is a reduction

Depreciation is a reduction in the value of a tangible fixed asset due to normal usage, wear and tear, new technology, or unfavourable market conditions. Learn about the straight line and diminishing value methods of depreciation , with examples and a quiz to test your knowledge. Depreciation is the deduction in the price of a tangible asset which reduces the asset’s monetary value due to a variety of reasons like wear and tear that is caused by a prolonged use of the asset. Depreciation is the term used to describe the slow decline in an asset's value over time, usually brought on by age, wear and tear, or obsolescence. Depreciation is a planned, gradual reduction in the recorded value of an asset over its useful life by charging it to expense, usually over multiple years.