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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Depreciation  

Definition 1.

A non-cash expense that provides a source of free cash flow. Amount allocated during the period to amortize the cost of acquiring long-term assets over the useful life of the assets.
 

Definition 2.

1. An expense recorded to reduce the value of a long-term tangible asset. Since it is a non-cash expense, it increases free cash flow while decreasing the amount of a company's reported earnings.2. A decrease in the value of a particular currency relative to other currencies.
 
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