# Depreciation

*Professional & Ethics — Finicade finance glossary*

Spreading the cost of a long-lived asset over the years it's used, instead of expensing it all at once. It's a non-cash charge that lowers reported profit — which is why cash flow can look healthier than earnings.

**Related terms:** [Accrual Accounting](https://finicade.com/glossary/accrual-accounting), [Income Statement](https://finicade.com/glossary/income-statement), [EBITDA](https://finicade.com/glossary/ebitda)

Source: https://finicade.com/glossary/depreciation