Kerry, Dawn, Louise and Alex were at a business women’s lunch. Kerry was showing the group photos of her new work vehicle that she had sign wrapped to promote her business. Louise thought Kerry was crazy stating ‘I cannot understand why you would buy a new car for your business when as soon as you drive it out of the car yard it depreciates in value!’ Is Louise correct in her statement? Explain to Louise what the term ‘depreciation’ means in accounting terms and advise why there may be a conceived reduction in the value of a new car when it is driven out of the car yard.