depreciation reserve

Definition of "depreciation reserve"
  1. A fund that a business builds up annually to cover the expected replacement cost of an asset when it depreciates and becomes obsolete
How to use "depreciation reserve" in a sentence
  1. The company maintains a depreciation reserve to replace worn-out machinery.
  2. Their depreciation reserve ensured they could promptly replace the obsolete computer equipment.
  3. Having a sufficient depreciation reserve is key for the seamless operation of the business.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z