What is Depreciation?

[IamDozzy]

A lot of Business owners and investors might have been hearing of Depreciation but do not know what it is about. Depreciation is when the amount of money a good or and asset is worth decreases due to wear and tear of the assets. The present worth of a goods or an asset is called salvage value. In accounting, Depreciation value is gotten by dividing the cost of an asset subtracted by the salvage value per Its useful life.

A perfect example of Depreciation is when one buys a car in let's say 2009. He/she would use the car for some years and in those years there would be several wear and tear on car like scratches on the car, weakening of the engine and lots more. If the owner decides to sell that car in this present year 2021, it would far less than what he bought it for . That means the car has depreciated in monetary terms.

 

[Ozigba Richard Lamai]

Depreciation can be serious anything that keeps going down when your stock reduce it's depreciation when your business begins to go down it is depreciation, depreciation can be seen as a negative reaction towards anything that is most valuable to you. We never pray for depreciation instead we all wish for increment in anything we do as a business man.

 

[Snazzy001]

on a very general note ,depreciation adoption in standard of something .it is a situation whereby the quality of something falls below standard .now speaking in terms of business ,price or quality of something is said to depreciate when it falls below the expectation of the public .the public can appreciate depreciation in price ,but will frown at depreciation in the quality of a product

 

[Samuel72]

According to my own point of view I believe depreciation is when a price of a commodity or a goose fall from its normal price, it is said that the price has depreciate. For example when it comes to cryptocurrency business the price is always shaking it has no stable stage . Is either appreciate or depreciate. also when it comes to the price of food in the market first it might be at $200 for a sachet and at the point in time it's my fall down to 150 it means the price has depreciate

 

[Henrylaw]

Depreciation is the reduction in value of commodities or services rendered over a period of time. Depreciation is the opposite of appreciation. The knowledge of depreciation and appreciation help us to know what to call asset and what to call liability. Anything whether be house or car that does not increase in value over time is called liability. Alternatively, anything that increases in value over time is called asset for example, land. Depreciation is caused by a lot of things which include, wear and tear, lack of storage facilities, adverse whether condition, pest, lack of maintenance etc. Food preservation methods helps to maintain the value of food commodities that quickly get spoiled when not preserved. Another method to prevent or reduce depreciation of value of machines is maintenance.

 

[Victor001]

Having stated and give detailed explanation of depreciation,I will add by saying we are solely responsible for every level of depreciation in our business, before venturing into business,we should note that while some good appreciates on time, others depreciate,this should enable us define our investment interns of assets and liabilities.

 

[Planet408]

Your view is lucid and well comprehended. There is no depreciations without a decrease. Once something is depreciating, it automatically decreasing in it's values. There are many things which can depreciate. There is property depreciation. Once property can depreciate by reducing in value due to one thing or the other. Goods and services can also depreciate.

 

[Alexandoy]

I clearly know of depreciation because it was part of our lesson in accounting subject when I was in college. What's good in depreciation is that you will have an idea of how much your asset is losing in value every year. There will come a time that it will be fully depreciated to reach a value of 1 peso only and it will stay like that in the accounting books until you dispose of the asset which can be a vehicle or furniture or appliance.

 

[IamDozzy]

I clearly know of depreciation because it was part of our lesson in accounting subject when I was in college. What's good in depreciation is that you will have an idea of how much your asset is losing in value every year. There will come a time that it will be fully depreciated to reach a value of 1 peso only and it will stay like that in the accounting books until you dispose of the asset which can be a vehicle or furniture or appliance.

I 100% agree with you, depreciation is an accounting and economic terminology. A lot of persons do not consider the depreciative nature of their assets before going for it . A typical example is a person in a dilemma of choosing between getting a car or a plot of land. With the knowledge of depreciation he/she would know the asset to go for first before other ones can come.

 

[sincerem]

Assets like car, house, Gold etc, depreciates when it is not highly on demand at the meantime. Car fades when it stays long, in oder to keep the value intact is buying and flipping it when it gets to you first time. House fades when you aren't maintaining, or the structure staying for many years and grow outdated. Gold price fluctuates around, it can go up and down depending the demand and supply rate.