You are reading a magazine related to your companys business and come across an article on depreciation

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You are reading a magazine related to your company’s business and come across an article on depreciation and amortization. In the article, the author made the following statement: 

“Depreciation is not the actual maintenance and costs related to the equipment, but rather the devaluation of the equipment as it is being used.”


Required

Explain whether the article’s author is correct or not.

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Related Book For  answer-question

Understanding Financial Accounting

ISBN: 9781119406921

2nd Canadian Edition

Authors: Christopher D. Burnley

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