BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Depreciation is referred to as the reduction in the value of an asset that occurs due to wear and tear during its useful life. Depreciation shows how much of an asset is used up during each accounting period. It is the process of writing off the value of an asset to the extent of its useful life.

Detailed explanation-2: -A depreciating asset is an asset that has a limited life expectancy (effective life) and can reasonably be expected to decline in value (depreciate) over the time it is used.

Detailed explanation-3: -3.1 Depreciation is a measure of the wearing out, consumption or other loss of value of a depreciable asset arising from use, effluxion of time or obsolescence through technology and market changes.

Detailed explanation-4: -The term depreciation refers to an accounting method used to allocate the cost of a tangible or physical asset over its useful life. Depreciation represents how much of an asset’s value has been used. It allows companies to earn revenue from the assets they own by paying for them over a certain period of time.

Detailed explanation-5: -A depreciating asset is an asset that has a limited effective life and can reasonably be expected to decline in value over the time it is in use. Tools, equipment and other items such as computers and books are depreciating assets.