depreciation allowance

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Sure! Let's break down the term "depreciation allowance" in a way that's easy to understand.

Definition:

Depreciation allowance is a noun that refers to an amount of money that a business can deduct from its income for the loss in value of its assets over time. This is often because things like equipment, vehicles, or buildings get older and wear out, which means they are worth less than when they were new.

Usage Instructions:

• Context: The term is commonly used in accounting and finance.
• When to use: You would use "depreciation allowance" when discussing business finances, tax deductions, or asset management.

Example:

• "The company claimed a depreciation allowance on its new machinery, which reduced its taxable income."

Advanced Usage:

• In more technical discussions, you might see terms like "straight-line depreciation" or "accelerated depreciation," which are methods used to calculate the depreciation allowance.

Word Variants:

• Depreciation (noun): The reduction in value of an asset over time.
• Allow (verb): To let something happen or to give permission.

Different Meanings:

• Depreciation by itself generally means a decrease in the value of something over time.
• Allowance can refer to a variety of meanings, such as a sum of money given regularly for a specific purpose, or permission to do something.

Synonyms:

• Tax deduction
• Write-off
• Expense allowance

Related Idioms and Phrasal Verbs:

While "depreciation allowance" as a phrase doesn’t have idioms or phrasal verbs directly associated with it, here are a few relevant financial terms: - Write off: To cancel a debt or to remove an asset from the books because it has no value. - Example: "The accountant decided to write off the old computer as it was no longer usable."

Summary:

In summary, a depreciation allowance is a financial term that helps businesses account for the decreasing value of their assets over time and can provide tax benefits.

Academic

Noun

1. an allowance for loss due to depreciation