DEPRECIATE

Definition of DEPRECIATE

DEPRECIATE Verb

Depreciate is a verb that refers to the reduction in value of an asset over time, particularly due to wear and tear or obsolescence. It can also mean to belittle or diminish the value of something in a figurative sense.

Reduction in Value: Depreciate involves the process of an asset losing value over time, often due to factors such as usage, age, or market conditions. For example, “The value of the car depreciates significantly each year.” This usage highlights the financial concept of depreciation, where assets lose value as they are used or become outdated.

Accounting and Financial Contexts: Depreciate is commonly used in accounting and financial contexts to describe the systematic reduction of an asset’s value over its useful life. For instance, “Businesses depreciate their equipment to account for its decreasing value.” This reflects how depreciation is calculated and recorded in financial statements.

Figurative Use: Depreciate can also be used in a figurative sense to describe the act of belittling or diminishing the perceived value or importance of something. For example, “He tended to depreciate the significance of the project’s impact.” This usage emphasizes how depreciation can extend beyond financial contexts to affect perceptions and value in other areas.

Impact on Valuation: Depreciate has a significant impact on valuation, both in financial and figurative contexts. For example, “Understanding how assets depreciate helps in accurately assessing their value over time.” This shows how the concept of depreciation influences financial assessments and valuations.

In conclusion, depreciate is a verb that refers to the reduction in value of an asset over time, typically due to wear and tear or obsolescence, as well as to belittle or diminish the value of something in a figurative sense. Understanding depreciate helps in recognizing its role in financial accounting, asset management, and its broader implications in valuation and perception.

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BANK

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MAXIMISE

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MONOPOLISE

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Examples of DEPRECIATE in a sentence

• The car began to depreciate in value as soon as it was driven off the lot.
• He warned that the currency would depreciate if inflation continued unchecked.
• The company’s stock price began to depreciate after the disappointing quarterly report.
• Assets like machinery and equipment tend to depreciate over time due to wear and tear.
• Real estate in the area is unlikely to depreciate, making it a sound investment.
• Her constant criticism seemed to depreciate the achievements of her coworkers.
• The value of the painting didn’t depreciate, but instead increased as it became more famous.
• The accountant explained how to calculate how assets depreciate on the company’s balance sheet.

Origin of DEPRECIATE

Depreciate traces its origins back to the Latin word depretiāre, which means “to reduce the value of.” This term combines de- (down, away) and pretium (price, value).

• Latin: Depretiāre (to reduce the value), from de- (down) and pretium (price, value).
• Early Modern English: The Latin depretiāre evolved into Early Modern English as depreciate, meaning “to reduce in value” or “to belittle.”
• Modern English: The term entered Modern English as depreciate, referring to the reduction in value over time, especially in financial contexts, or to speak of someone or something in a derogatory manner.

In contemporary English, depreciate primarily refers to the reduction in value of an asset over time, such as property or currency. It can also mean to belittle or diminish the importance of something or someone. The term has evolved from its Latin roots of reducing value to encompass both financial contexts and the act of lowering the perceived worth or importance. Depreciate highlights both the concept of diminishing value and the act of undervaluing or disparaging.

INTANGIBLE

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ATTRACTIVE

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INFLUENCER

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ABSORPTION

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