What do you mean by the term depriciation?

Business & Management
#1

In simple terms depreciation can be defined as the decrease in the value of a asset. This represents the loss of value from an existing stock of real capital (for an
individual company or for the whole economy), reflecting the normal wear-and-tear of
machinery, equipment, and infrastructure. A company or country must invest continuously just
to offset depreciation, or else its capital stock will gradually run down.