write off

write off definition - business

write off

To reduce the balance (that is, the book value of an asset or a group of assets) in an account to zero by recognizing the recorded value as an expense. For example, a firm may write off a technologically obsolete asset shown on its balance sheet as having monetary value. The asset will then be deleted from the balance sheet, and income during the period will be reduced (or losses will be increased) by an equivalent amount. Also called charge off.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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