Financial Statements

Depreciation

Definition

What is Depreciation?

The systematic allocation of a tangible asset's cost over its useful life.

Example in practice

A machine's cost is expensed over ten years through depreciation.

Keep learning

Income generated from selling goods or services before expenses are deducted.

The percentage increase or decrease in revenue over a period.

Direct costs attributable to goods or services sold during a period.

Gross profit expressed as a percentage of revenue.

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