Describe appreciation and depreciation of assets?

Appreciation and depreciation are terms used to describe the increase or decrease in the value of assets over time.

Appreciation refers to an increase in the value of an asset. This can be due to a variety of factors, such as increased demand for the asset, improvements made to the asset, or changes in market conditions. When an asset appreciates, it is worth more than it was when it was originally purchased.

Depreciation, on the other hand, refers to a decrease in the value of an asset. This can be due to factors such as wear and tear, obsolescence, or changes in market conditions. When an asset depreciates, it is worth less than it was when it was originally purchased.

Both appreciation and depreciation are important concepts to consider when evaluating the value of assets, as they can have a significant impact on an individual's or organization's financial position.