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 the decrease in value of a company's assets from use. An company car purchased for $20,000 and expected to be worth $16,000 after a year's use will have depreciated by $4,000. The company must recognize this $4,000 as an expense, even though no actual cash outlay is made for this.