depreciation
7 synonyms and 2 antonyms for depreciation, grouped by meaning and by how common each one is.
Noun — In accounting, the spreading of the cost of an asset over the years it is used, recorded as an expense to reflect the value it loses through wear and age.
Synonyms
Everyday swaps
Common words most readers know — safe in any writing.
Rare, literary or technical
Precise, but they will stand out — check the sense before using one.
Synonyms by Meaning
1. noun
In accounting, the spreading of the cost of an asset over the years it is used, recorded as an expense to reflect the value it loses through wear and age.
“The vans are written off over five years using straight-line depreciation.”
2. noun
A fall in the value or price of something over time.
“A new car suffers heavy depreciation in its first year.”
Opposites
How to use depreciation
The word patterns that sound natural to a native speaker.
Neutral; central vocabulary in accounting, tax and economics.
Etymology
From Late Latin depretiare 'to lower the price of', from de- 'down' and pretium 'price'.
Full origin of depreciation →Frequently asked questions
What is the difference between depreciation and amortisation?
They are the same idea applied to different assets. Depreciation spreads the cost of tangible assets such as vehicles, machinery and buildings. Amortisation does the same for intangible assets such as patents, licences and goodwill.
What is the difference between depreciation and devaluation?
Depreciation of a currency is a fall in its market value under floating exchange rates. Devaluation is a deliberate reduction announced by a government or central bank under a fixed or pegged rate. One happens to a currency; the other is done to it.
Why is depreciation an expense if no money leaves the business?
Because the money was spent when the asset was bought, and the asset is used up gradually. Charging depreciation each year matches that cost to the periods that benefit from it, which gives a truer picture of profit than recording the whole outlay at once.