How Often Do You Change Brake Fluid? Brake fluid is something thatâs important for the safe operation of your vehicle, but most people donât know how or when it should be changed. The average person drives anywhere from ten to fifteen thousand miles per year, and they use their brakes about 75,000 times.
DEFINITION of 'Depreciation'. 1. A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes. 2. A decrease in an asset's value caused by unfavorable market conditions.
Depreciation has nothing to do with the market value of a fixed asset, which may vary considerably from the net cost of the asset at any given time. Depreciation is a major issue in the calculation of a company's cash flows, because it is included in the calculation of net income, but does not involve any cash flow.hen you record depreciation, it is a debit to the Depreciation Expense account, and a credit to the Accumulated Depreciation account. The Accumulated Depreciation account is a contra account, which means that it appears on the balance sheet as a deduction from the original purchase price of an asset.