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Shrinking Asset |
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Shrinking Asset 1. An asset that depreciates. For example, an automobile is a shrinking asset because it loses value over time due to its limited useful life. Shrinking assets are important in taxation: one pays less in taxes on an asset the more it depreciates. See also: Absolute physical life. 2. An asset that is consumed. These shrinking assets are usually commodities; for example, a trucking company may buy a large amount of gasoline, which could theoretically be resold or liquidated, but is in fact used in the operation of the trucking company. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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