accounting
depreciation
A decrease in the value of an asset over time due to wear, age, or obsolescence.
Example
"The car's depreciation meant it was worth only half its purchase price after four years."
💡 Memory Tip
DE-preciation — de means down. Depreciation is the value going DOWN.
Etymology
From Latin 'depretiare' meaning 'to lower the price of' — the price goes down.
Common Misspellings
depriciationdepreceationdepreciatondepricciation
Related Terms
See Also
book value