depreciation
Pronunciation: [dɪˌpriːʃiˈeɪʃən]
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?