An accounting practice of spreading out the payment of an asset over time (typically over the course of the asset’s useful life). For assets like machinery or technical equipment, it’s prudent to spread out the cost of the asset and begin generating revenue from it immediately instead of paying the entire cost in one lump sum. It’s used to account for declines in carrying value of a company as well.
We don't know everything about the markets. We're just devoted to learners. Taken from those smarter than ourselves, here's how we define Depreciation.