Meaning & use
depreciation
A gradual decrease in the value of an asset over time.
See it in a sentence
The car's depreciation meant it was worth far less after just two years.
Businesses can deduct depreciation on equipment when calculating taxable income.
A note on using this word
A key accounting term, distinct from "amortization," which typically applies to intangible assets or loans.
Words with a similar meaning
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