1. A belief in something or an impression that is firmly maintained despite being contradicted by what is generally accepted as fact, reality or rational argument. Resulting from deception, misconception or misassignment. 2. The action of deluding someone or the state of being deluded. 3. In severe cases can be symptomatic of mental disorder.
The gradual reduction of an asset’s value. A non-cash expense, which is often a tax write-off. A person or company may reduce their taxable income by the amount of the depreciation on the asset. Because this is an accounting function, it often has little resemblance to the asset’s useful life. The owner of the asset continues to use it tax-free after its value has been depreciated to nothing.