depreciation

(noun)

The measurement of the decline in value of assets. Not to be confused with impairment, which is the measurement of the unplanned, extraordinary decline in value of assets.

Related Terms

  • lessee

Examples of depreciation in the following topics:

  • Leasing

    • Business products also tend to depreciate quickly and have little value at the end of its life.
    • Leasing allows organizations to avoid dealing with the depreciation of outdated products.
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