What are these terms Appreciation & Depriciation means?
Appreciation: Appreciation is a term used in accounting relating to the increase in value of an asset. In this sense it is the reverse of depreciation, which measures the fall in value of assets over their normal life-time. Appreciation is also a term meaning an expression of gratitude. Depreciation: Depreciation is a term used in accounting, economics and finance with reference to the fact that assets with finite lives lose value over time. In economics depreciation is the decrease in the economic value of the capital stock of a firm, nation or other entity, either through physical depreciation, obsolescence or changes in the demand for the services of the capital in question. If capital stock is C0 at the beginning of a period, investment is I and depreciation D, the capital stock at the end of the period, C1, is C0 + I – D. Thank you for reading.
Appreciation is a term used in accounting relating to the increase in value of an asset. In this sense it is the reverse of depreciation, which measures the fall in value of assets over their normal life-time. Appreciation is a rise of a currency in a floating exchange rate. In times of high inflation, appreciation will be common to all balance sheet assets. Generally, the term is reserved for property or, more specifically, land and buildings. In any viable modern economy, such property tends to increase in value over the years – if only because of the scarcity of usable land forces its price in a competitive situation. However, this belief has often caused speculative bubbles to arise. Depreciation is a term used in accounting, economics and finance with reference to the fact that assets with finite lives lose value over time. In accounting, depreciation is a term used to describe any method of attributing the historical or purchase cost of an asset, across its useful life, roughly c
