Financial Dictionary

This dictionary contains:
24549
financial terms

Depreciation




Depreciation

A non-cash expense (also known as non-cash charge) that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring long-term assets over the useful life of the assets.

RELATED TERMS
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Expense
Expense refers to the amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures).

Cash
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and banker's acceptances.

Cost
The opposite of revenue. An expense that reflects the price of purchasing goods, services and financial instruments. A cash cost means that cash is given up today to the purchase. Also, the purchase price of an investment, which is compared to the sale proceeds to determine capital gain or loss.

Long-term
Three or more years. In the context of accounting, more than 1 year.



SIMILAR TERMS
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Depreciate
To allocate the purchase cost of an asset over its life.

Depreciated cost
1) In terms of economics: The measure of capital consumption during production. 2) In terms of finance: The process of amortization of fixed assets (equipment) to spread the cost over the depreciable life of the assets.

Depreciation tax shield
The value of the tax write-off on depreciation of plant and equipment.

Depressed market
Market in which supply overwhelms demand, leading to weak and lower prices.

Depressed price
In the context of stocks, stock whose market price is low in comparison to stocks in its sector.

Depression
Period when excess aggregate supply overwhelms aggregate demand, resulting in falling prices, unemployment problems, and economic contraction.



PREVIOUS AND NEXT TERMS
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Depository transfer check (DTC)
Check made out directly by a local bank to a particular firm or person.

Depository Trust and Clearing Corporation (DTCC)
The Depository Trust and Clearing Corporation (DTCC), through its subsidiaries, provides post-trade clearance, settlement, custody and information services for equities, corporate and municipal debt, money market instruments, American depositary receipts, exchange-traded funds, unit investment trusts, mutual funds, insurance products and other securities.

Depository Trust Company (DTC)
DTC is the world's largest central securities depository. It accepts deposits of over 2 million equity and debt securities issues.

Depreciate
To allocate the purchase cost of an asset over its life.

Depreciated cost
1) In terms of economics: The measure of capital consumption during production. 2) In terms of finance: The process of amortization of fixed assets (equipment) to spread the cost over the depreciable life of the assets.

Depreciation

Depreciation tax shield
The value of the tax write-off on depreciation of plant and equipment.

Depressed market
Market in which supply overwhelms demand, leading to weak and lower prices.

Depressed price
In the context of stocks, stock whose market price is low in comparison to stocks in its sector.

Depression
Period when excess aggregate supply overwhelms aggregate demand, resulting in falling prices, unemployment problems, and economic contraction.

Deregulation
The reduction of government's role in controlling markets, which lead to freer markets, and presumably a more efficient marketplace.

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This dictionary contains 24549 terms.







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