Definition
Depreciation is the systematic allocation of the cost of tangible assets over their estimated useful lives. Depreciation recognizes the gradual reduction in the value of assets due to factors such as wear and tear, obsolescence, and usage. Depreciation expense is recorded on the income statement to match the cost of assets with the revenue they generate during their useful lives, helping to accurately reflect the consumption of assets and the allocation of expenses over time.
Our trending searches definitions
Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.