Depreciation Allowance (Noun)
Meaning
An allowance for loss due to depreciation.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The company claimed a depreciation allowance on its financial statements to account for the decrease in value of its equipment over time.
- The tax code permits businesses to deduct a depreciation allowance from their taxable income each year to reflect the decrease in value of their assets.
- To determine the depreciation allowance, the accountant made a thorough assessment of the company's assets and their expected useful life.
- The depreciation allowance was calculated as 10% of the asset's original cost, which was then subtracted from the company's gross income.
- The financial analyst took into account the depreciation allowance when evaluating the company's profitability to get a more accurate picture of its financial health.