## Depreciation (Depreciation) Explained Simply and Practically
If you are a business owner or investor, you’ve probably seen the term **depreciation** many times, but may not fully understand how it works or why it is calculated.
In short, depreciation (Depreciation) is an accounting process used to gradually reduce the value of tangible assets (such as buildings, machinery, vehicles) over time as they are used. Because these assets wear out or become obsolete, their value decreases, similar to an old car whose price drops over the years.
### Why is depreciation accounting necessary?
For comp
View OriginalIf you are a business owner or investor, you’ve probably seen the term **depreciation** many times, but may not fully understand how it works or why it is calculated.
In short, depreciation (Depreciation) is an accounting process used to gradually reduce the value of tangible assets (such as buildings, machinery, vehicles) over time as they are used. Because these assets wear out or become obsolete, their value decreases, similar to an old car whose price drops over the years.
### Why is depreciation accounting necessary?
For comp