Depreciation

Depreciation is the way businesses gradually account for and spread the cost of an asset, like equipment or a vehicle, over its useful lifespan.

Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life, reflecting the gradual decrease in its value due to factors such as wear and tear, obsolescence, or the passage of time.

Depreciation is like spreading out the cost of something valuable over the time it's useful, recognising that things lose value as they get older or wear out.