Depreciation Current Asset is a term used in accounting to describe the process of allocating an asset’s cost over its life span. The idea behind this concept is to spread out the costs and benefits associated with an asset across its expected lifespan. This helps businesses plan better for future expenses and make more informed decisions when it comes to investing in new equipment or other long-term assets. In essence, depreciation current asset helps provide financial stability by ensuring that businesses are aware of their expected future expenses and that they can adequately plan for them.