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depreciation

Pronunciation: [dɪˌpriːʃiˈeɪʃən]

Word

Learn how to use depreciation in a sentence: 9 audio examples across 3 meanings.

Context: “finance”

(noun) a decrease in the value of an asset over time. It means that something you own, like a car or a computer, is worth less money now than when you bought it.

Example

The car's value showed a depreciation after five years, making it cheaper to sell.

Example

There was no depreciation in the house's value despite the market changes.

Example

What is the total depreciation of your equipment over three years?

Context: “economics”

(noun) a reduction in the value of currency or money over time, which means that the money buys less than it did before. Think of it like when your allowance buys fewer candies than it used to.

Example

The depreciation of the dollar made imported goods more expensive.

Example

There has been no depreciation of the currency, so prices remain stable.

Example

How does the depreciation of currency affect everyday shopping?

Context: “business”

(noun) a way to account for the loss of value of your business’s assets over time, usually written down in financial records. It helps businesses know how much their items are worth now.

Example

The accountant calculated the depreciation of the computer equipment for the year.

Example

Ignoring depreciation can make the company seem more profitable than it really is.

Example

How does the depreciation affect our business profits?

How to pronounce depreciation

Pronunciation: [dɪˌpriːʃiˈeɪʃən]

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