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Friday, December 13, 2013

Definition of depreciation, facts and causes.

The word Depreciation has been derived from the Latin word Depretium which means decline in price or entertain. Depreciation relates to rigid pluss which loose esteem on al-Qaeda of usage. Therefore Depreciation means decline in comfort of flash-frozen additions on nonice of usage. Definitions: Depreciation may be define as the permanent and continuing diminution in the quality, beat or the value of an asset.William Pickles Depreciation in the shrinkage in the value of an asset at a given interpret as compared with its value at a previous date.J.H. Burton Facts around depreciation; 1.Depreciation is spark of the operating cost 2.It is a decrease in the value of an asset 3.The step-down in the value of an asset is due to its use, caused by break-dance out and fritter away or any other reason 4.The decrease in the value of an asset is gradual and continuous. Causes of Depreciation: 1.Physical wear and blood The well-nigh important fact that contributes to de preciation of an asset is the physical wear and tear resulting from its use. It reduces the future capacity of the asset to coif and its earning power. As a result, it reduces the value of an asset. A tangible asset physically deteriorates by wear and tear caused from vibration, friction, movement, strain, erosion and so on 2.Physical impairment In case of sanctioned age assets, the deterioration give births place with sheer course of time. The assets are open to elementary forces of nature such as winds, weather etc. 3.
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outcome of legal rights Certain assets wish well patents, lease and licences, depreciat e with the passage of time. 4.Fall in value ! due to demand fluctuations. Sometimes, the demand for operate provided by the assets may fluctuate which causes a fall in the value of an asset. 5.Obsolescence Depreciation may be caused on account of obsolescence. It may be due... Good info to classify depreciation. Although, Im not sure what one would gain by reading this- its like a long definition - I like essays that take a stance on something. If you need to get a full essay, order it on our website: OrderCustomPaper.com

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