How does the adjustment for depreciation differ from other defferal adjustments?

Adjustment for depreciation differs from other deferral adjustments because it is an ongoing expense over the life of an asset rather than a one-time payment from a financial transaction such as a loan. Depreciation represents the cumulative amount of an asset’s value that has been lost due to use, wear, or obsolescence over time. While other deferral adjustments are recorded and accrued for later use, depreciation is not an adjustment that will be reversed or repaid. It is an ongoing process that must be consistently recorded in order to determine the true value of an asset and its corresponding value for tax purposes.