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Accrued Dictionary

Depreciation

By PRETTY BOOKS ON June 3, 2021
Metaphorical definitions of complex accounting terms.

The accounting language is filled with highly technical words and phrases that describe the highly technical job functions of an accountant. The ACCRUED DICTIONARY is a collection of common terms accountants use broken down into easy-to-understand metaphors, jokes, and whimsy. The dictionary cuts through the technical jargon and gives you a metaphorical perspective at what these words mean

Depreciation

Noun. [dih-pree-shee-ey-shuh n]
  1. Accrued Dictionary definition: The amount of miles you drive in your car each year. Each mile counts towards the 12,000 mile warranty. After that, the warranty runs out, but you’re still able to drive your car.

     //My car is worth a lot less than it was 200,000 miles ago thanks to depreciation. 

  1. Textbook definition: Allocating the cost of a physical asset over its life expectancy to help companies earn revenue from an asset while expensing some of its cost each year it is being used, representing how much value has already been used.

     //Technically my $20 desk depreciates in value over time, but it’s not worth noting in my books.

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The information provided in this post is for general informational and educational purposes only and is not a substitute for professional advice. Consult your financial, business, or tax advisor with respect to matters referenced in this post. Pretty Books assumes no liability for actions taken in reliance upon this information.

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