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 is an accounting convention that allows companies to expense an estimate for the portion of long-term operating assets used in the current year. It is a non-cash expense that inflates net-income, but helps to match revenues with expenses in the period in which they are incurred.