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UK//dɪˌpriː.ʃiˈeɪ.ʃən//US//dɪˌpriːʃiˈeɪʃən//

Meaning of Depreciation

In simple words: The decrease in value of something over time.

Depreciation in a sentence

  • The depreciation of the car’s value was calculated at $2,000 per year.
  • Investors need to consider depreciation when assessing asset performance.
  • Depreciation affects tax deductions for businesses.
  • In real estate, depreciation can impact property taxes significantly.
  • The company recorded depreciation on its machinery to reflect its aging.

How to use Depreciation

Used mainly in finance and accounting contexts. Not typical in casual conversation. Important in discussing asset valuation and taxes.

Grammar pattern

standalone noun

Memory hint

Think of 'depreciation' as 'decreasing price' - both start with 'de'.

Related words

Collocations with Depreciation

  • calculate depreciation
  • annual depreciation
  • depreciation expense
  • depreciation schedule
  • depreciation allowance

Synonyms for Depreciation

Common mistakes with Depreciation

  • Confused with 'devaluation', which refers to a decrease in value due to changes in currency.
  • Misused in non-financial contexts, as 'depreciation' primarily applies to tangible assets.
  • Incorrectly used as both a noun and a verb; it's only a noun.

Compare Depreciation with Decline, Reduction, Loss

Depreciation appears in

Depreciation in other languages

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Frequently asked questions about Depreciation

What does Depreciation mean?

The decrease in value of something over time.

What is the definition of Depreciation?

A reduction in the value of an asset over time, in accounting and finance.

How do you use Depreciation in a sentence?

The depreciation of the car’s value was calculated at $2,000 per year.

Can you give another example of Depreciation?

Investors need to consider depreciation when assessing asset performance.

What are synonyms for Depreciation?

Common alternatives include devaluation, diminution, decline, reduction, loss.

What words go with Depreciation?

It commonly pairs with calculate depreciation, annual depreciation, depreciation expense, depreciation schedule, depreciation allowance.

What are common mistakes when using Depreciation?

Confused with 'devaluation', which refers to a decrease in value due to changes in currency. Misused in non-financial contexts, as 'depreciation' primarily applies to tangible assets. Incorrectly used as both a noun and a verb; it's only a noun.

How do you pronounce Depreciation?

US: //dɪˌpriːʃiˈeɪʃən//, UK: //dɪˌpriː.ʃiˈeɪ.ʃən//. Listen to the audio above to hear native pronunciation.

Is Depreciation formal or informal?

"Depreciation" is formal, so it fits professional, business, or academic conversations.

When should I use Depreciation?

Used mainly in finance and accounting contexts. Not typical in casual conversation. Important in discussing asset valuation and taxes.