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depreciation
by 趙永祥 2016-07-20 07:28:01, 回應(0), 人氣(717)

Accounting: The gradual conversion of the cost of a tangible capital asset or fixed asset into an ...
BusinessDictionary.com
TERM OF THE DAYJULY 14, 2016
depreciation
f   t

1. Accounting: The gradual conversion of the cost of a tangible capital asset or fixed asset into an operational expense (called depreciation expense) over the asset's estimated useful life. The objectives of computing depreciation are to (1) reflect reduction in the book value of the asset due to obsolescence or wear and tear, (2) spread a large expenditure (purchase price of the asset) ... Read more

USAGE EXAMPLE
What Bill did not realize was that once he had driven his expensive new Mercedes off the car dealership's lot, the initial depreciation would be at least twenty percent of the sales price of the car.
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