C1nounformalmoneybusiness
US/dɪˌpriː.ʃiˈeɪ.ʃən/
UK/dɪˌpriː.ʃiˈeɪ.ʃən/
the fall in the value of an asset over time because of age or use
In context
The accountant recorded the depreciation of the delivery trucks in the annual report.
New cars lose much of their value in the first year because of depreciation.
Depreciation on office equipment is spread over five years for tax purposes.
Words that go with depreciation
adjective + noun
- annual depreciationAnnual depreciation reduced the company's profit.
- accumulated depreciationAccumulated depreciation is shown on the balance sheet.
noun + preposition
- depreciation of assetsThe depreciation of assets is a normal business cost.
- rate of depreciationThe rate of depreciation depends on the type of equipment.
verb + noun
- charge depreciationThe firm charges depreciation on all machinery.
- calculate depreciationAccountants calculate depreciation at the end of each year.
Common mistakes
Incorrect:
the appreciation of the old carCorrect: the depreciation of the old car