Depreciation
(Sometimes called "amortization" expense when referring to intangible). Depreciation expense is a charge against income (is subtracted from sales revenues to produce a lower income); it as a way of accounting for the purchase of long-lasting assets over a period of years. The idea is that assets have a useful life (depreciable life), over which they are used up or worn out, and that the owner gets the tax benefits of paying for the asset over those years instead of all at once.
Depreciation is applied only to capitalized assets (see asset), not items bought as expenses.
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