What is Appreciation? 🎉
Ah, appreciation! It’s the financial equivalent of your grandmother pinching your cheeks and telling you how much you’ve grown. Simply put, appreciation refers to an increase in the value of an asset or a currency. So, while you might wish for body appreciation (height, muscles), your assets and currencies appreciate through means like inflation, market price hikes, or earning interest.
When Assets Get Buff: Understanding Asset Appreciation 🏋️
In the wild realm of accounting, when assets bulk up in value, it’s what we call appreciation. Imagine your company owns a building. Over time, due to factors like inflation or the market realizing
