Define the term Accounting for Depreciation?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 9Q: Explain the difference between depreciation, depletion, and amortization.
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Define the term Accounting for Depreciation?

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Depreciation:

 

It is the reduction in the value of an asset due to factors like normal usage or obsolescence. It is considered as a non-cash expense since it has no associated cash flow.

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