what is depreciation.?

Question

depreciation kay hai.

Answer 1

The devaluation of an item over time. For example, you buy a new car at $20K. Every year, the value of this car goes down by $5K a year amking it worth only $15 after year one. Most businesses use depreciation as a means to lower annual payment values on a P&L statement.

Answer 2

Every asset have a cost and life. Depreciation is the decrease in book value of an asset over its life. Say if u purchase a car for USd 10000 and its life is 5 years then Depreciation expense will be USD 2000 per year i.e. at the end of year 1 book value of car will be 8000 $ and after year 5 its value will be $ 1 only.

Answer 3

It’s a financial and accounting term.

In a business usually there are some fixed asset, like land, building machinery, furniture, Vehicle and more. All these things invested by the owner or partner or by the shareholders for running a business. These assets belong in the business for a number of years i.e. that business get utility from these assets for a multiple years.

Describing true operational result of the business, a certain percentage of the fixed asset value, charge to the profit and loss account and the book value of those assets reduce to that extend. This charge named as depreciation. It’s a non-money transaction, book adjustments only.

One of the major benefit of depreciation is business could easily accommodate replacement of costly assets after several year without having a big changes in the balance sheet.

Answer 4

Depreciation is an accounting and finance term for the method of attributing the cost of an asset across the useful life of the asset.

Answer 5

Depreciation describes the process in which an item loses its value over time.

Answer 6

depreciation means the reducing buy back value of a piece of equipment over a number of year(s)

Answer 7

loss of value due to wear and tear

Answer 8

it is the rate in which the price for any material (cars, pcs, tv., ...) decrease per year.