Definition of depreciation, facts and causes.

The word Depreciation has been derived from the Latin word Depretium which means decline in price or entertain. Depreciation relates to rigid pluss which loose esteem on cornerstone of usage. Therefore Depreciation means decline in apprise of dictated pluss on write up of usage. Definitions: Depreciation may be delimit as the permanent and continuing diminution in the quality, sum of money or the value of an asset.William Pickles Depreciation in the shrinkage in the value of an asset at a given hear as compared with its value at a previous date.J.H. Burton Facts virtually depreciation; 1.Depreciation is spark of the operating cost 2.It is a decrement in the value of an asset 3.The step-down in the value of an asset is due to its use, caused by break-dance out and spud or any other reason 4.The decrease in the value of an asset is gradual and continuous. Causes of Depreciation: 1.Physical wear and shoot down The well-nigh important fact that contributes to depreciation of an asset is the physiological wear and tear resulting from its use. It reduces the future capacity of the asset to perform and its earning power. As a result, it reduces the value of an asset. A tangible asset physically deteriorates by wear and tear caused from vibration, friction, movement, strain, erosion etcetera 2.Physical decline In case of sanctioned age assets, the deterioration adopts place with sheer transition of time. The assets are open to master(a) forces of nature such as winds, weather etc. 3.

expiration of legal rights Certain assets identical patents, lease and licences, d epreciate with the passage of time. 4.Fall i! n value due to demand fluctuations. Sometimes, the demand for function provided by the assets may fluctuate which causes a fall in the value of an asset. 5.Obsolescence Depreciation may be caused on account of obsolescence. It may be due... Good info to classify depreciation. Although, Im not sure what one would gain by reading this- its like a long definition - I like essays that take a stance on something. If you need to get a full essay, order it on our website: OrderCustomPaper.com

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