What does depreciate means?

Answer 1

Depreciation means the reduction price of the fixed assets by consumption. It is an expense for business. In layman's terms, as regards the depreciation of a car, for instance, depreciation occurs when something loses value over time.

Answer 2

Depreciation means the reduction price of the fixed assets by consumption. It is an expense for business. In layman's terms, as regards the depreciation of a car, for instance, depreciation occurs when something loses value over time.

Answer 3

Depreciation is a term to mean that an item has lost original value. For most items, once it is sold, it immediately depreciates; such items as computers, vehicles, household items, and media all lose value.

Sometimes it is quickly, sometimes slowly, but the hard reality is that everything loses value. Clothes, tech, furnishings...the biggest issue is in how to evaluate the rate of depreciation.

In business, most federal depreciation guidelines allow for a ten year depreciation on industrial equipment. Other guidelines depreciate goods according to a five year or even 20 year timeline. But ultimately, the effective value of an item becomes zero in terms of depreciation.

This is not to mean that the item becomes useless. It means that the item is no longer a line item in the accounting ledger. A cash register might have depreciated to zero in the ledger, yet is actively used in the business. It can no longer be counted as an asset to be depreciated against the profit margin

Short version: After an item has been fully depreciated, it can no longer be used to amortize the profit margin.

Answer 4

Depreciates means to reduce in the value of assets due to wear and tear of that assets due to usage in business activity.