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Definitions from WordNet | ||||
Definitions from the WebTerm: Depreciation ChargeDescription:Depreciation charge refers to the allocation of the cost of a tangible asset over its estimated useful lifespan. It is an accounting method used to recognize the decrease in value of an asset as it experiences wear and tear or becomes obsolete over time. Senses and Usages:Sense 1: AccountingIn accounting, a depreciation charge represents the systematic reduction of the value of an asset on the balance sheet as an expense over its useful life. Sample Sentence: The company recorded a depreciation charge of $10,000 for the new machinery purchased last year. Sense 2: Financial AnalysisIn financial analysis, depreciation charge is a crucial indicator used to determine the true cost of asset utilization and its impact on profitability. Sample Sentence: The higher depreciation charge in the latest quarterly report suggests that the company has been investing heavily in its infrastructure. Sense 3: TaxationWhen calculating tax liabilities, businesses can deduct the depreciation charge on their assets, which helps to reduce their taxable income. Sample Sentence: By strategically managing the depreciation charge, businesses can optimize their tax payments in accordance with relevant tax laws. Related Products:Explore the following related products on Amazon: | ||||
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