DEPRECIATION

depreciation (di-pree-shee-ay-sh[schwa]n), n. A decline in an asset’s value because of use, wear, or obsolescence. Cf. APPRECIATION; AMORTIZATION(2). — depreciate, vb. — depreciable, adj. accumulated depreciation. The total depreciation currently recorded on an asset. • On the balance sheet, an asset’s total cost less accumulated depreciation reflects the asset’s book value. — Also termed accrued