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Depreciated Meaning: Definition, Examples, and Translations

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depreciated

[dษชหˆpriหสƒieษชtษชd ]

Definition

Context #1 | Adjective

financial terminology

Depreciated refers to a reduction in the value of an asset over time, particularly due to wear and tear or obsolescence. In accounting, it reflects the expense on a company's balance sheet as the value of an asset decreases. Depreciation is often calculated using various methods, such as straight-line or declining balance. This concept is crucial for businesses to understand as it impacts tax liabilities and overall financial health.

Synonyms

diminished, reduced, valueless.

Examples of usage

  • The machinery has depreciated significantly since its purchase.
  • A car depreciates rapidly within the first few years.
  • Understanding how assets depreciate helps in financial planning.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Economics

  • Depreciation is a key concept in accounting, used to allocate the cost of tangible assets over their useful lives.
  • Different methods, like straight-line or declining balance, determine how and when assets lose value.

Pop Culture

  • In video games, many virtual items can depreciate in value based on demand and supply fluctuations.
  • The concept is often featured in movies that depict financial collapse or market crashes, showing how quickly perceptions of value can change.

Technology

  • With advancements, technology products often depreciate rapidly; a new smartphone can lose value as soon as it's unboxed.
  • Software can also depreciate, as older versions become less effective over time due to updates and new releases.

Psychology

  • The phenomenon of 'hedonic depreciation' explains how people may find less pleasure from objects the longer they own them.
  • This can affect consumer behavior, where individuals may decide to sell items before they depreciate further.

Origin of 'depreciated'

Main points about word origin

  • The word comes from the Latin 'depreciatus,' meaning to lessen in value or worth.
  • It has been used in the English language since the late 1800s, primarily in economic contexts.

The term 'depreciated' originates from the Latin word 'depretiฤre', which means 'to lessen in value'. It began to be used in economic contexts in the late 18th century. The concept of depreciation is rooted in the observation that assets lose value over time due to factors like usage and market conditions. As accounting systems evolved, particularly in the 20th century, the need for systematic methods to account for this loss became essential in financial reporting. Today, depreciation is a key component in both accounting practices and financial analysis, driving decisions on asset management and investment strategies.

Word Frequency Rank

At position #14,775, this word is part of sophisticated English vocabulary. It's useful for academic or professional contexts where precise language is needed.