Depreciation is an accounting and tax concept used to estimate the loss of value of assets over time. For example, cars depreciate with use.

Be sure to read up on accumulated depreciation, and check out the entry on EBITDA (earnings before interest, taxes, depreciation, and amortization) as well.

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Bplans GlossaryBplans Glossary

At Bplans, it's our goal to make it easy for you to start and run your business. The Bplans glossary of common business terms will help you learn about key small business and entrepreneurship topics.