IamDozzy
Active member
A lot of Business owners and investors might have been hearing of Depreciation but do not know what it is about. Depreciation is when the amount of money a good or and asset is worth decreases due to wear and tear of the assets. The present worth of a goods or an asset is called salvage value. In accounting, Depreciation value is gotten by dividing the cost of an asset subtracted by the salvage value per Its useful life.
A perfect example of Depreciation is when one buys a car in let's say 2009. He/she would use the car for some years and in those years there would be several wear and tear on car like scratches on the car, weakening of the engine and lots more. If the owner decides to sell that car in this present year 2021, it would far less than what he bought it for . That means the car has depreciated in monetary terms.
A perfect example of Depreciation is when one buys a car in let's say 2009. He/she would use the car for some years and in those years there would be several wear and tear on car like scratches on the car, weakening of the engine and lots more. If the owner decides to sell that car in this present year 2021, it would far less than what he bought it for . That means the car has depreciated in monetary terms.