straight-line method of depreciation (Meaning)
Wordnet
straight-line method of depreciation (n)
(accounting) a method of calculating depreciation by taking an equal amount of the asset's cost as an expense for each year of the asset's useful life
Synonyms & Antonyms of straight-line method of depreciation
No Synonyms and anytonyms found
straight-line method of depreciation Sentence Examples
- Our company adopts the straight-line method of depreciation for all tangible assets.
- The straight-line method allocates the cost of an asset evenly over its estimated useful life.
- Under the straight-line method, depreciation expense is recognized in equal amounts each period.
- The formula for calculating straight-line depreciation is (Asset Cost - Residual Value) / Useful Life.
- The straight-line method is straightforward to apply and provides consistent depreciation charges.
- This depreciation method assumes that the asset's value decreases linearly over its lifespan.
- The straight-line method does not consider the asset's usage or changing market conditions.
- Other depreciation methods, such as the declining balance method, can result in different depreciation charges.
- The choice of depreciation method depends on the nature of the asset and the company's accounting policies.
- The straight-line method of depreciation is widely used due to its simplicity and reliability.
FAQs About the word straight-line method of depreciation
(accounting) a method of calculating depreciation by taking an equal amount of the asset's cost as an expense for each year of the asset's useful life
No synonyms found.
No antonyms found.
Our company adopts the straight-line method of depreciation for all tangible assets.
The straight-line method allocates the cost of an asset evenly over its estimated useful life.
Under the straight-line method, depreciation expense is recognized in equal amounts each period.
The formula for calculating straight-line depreciation is (Asset Cost - Residual Value) / Useful Life.
