Declining Balance Method Of Depreciation

 

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Declining Balance Method Of Depreciation

Depreciation by a fixed annual percentage of the balance after deducting each yearly depreciation amount.



Declining Balance Method Of Depreciation

Similar Matches

Real appreciation or depreciation

Real appreciation or depreciation

A change in the purchasing power of a currency.


Depreciation

Depreciation

The charge in a company's accounts which reflects the reduction in value of an asset over time as its useable life is exhausted.Depreciation is charged before calculation of profit, on the grounds that the use of capital assets is one of the costs of being in business and one of the contributors to profit.There are two main methods of depreciation:Straight line: the residual (scrap) value of the asset is deducted from its original cost, and the resultant figure is divided by the estimated life of the asset. The result of that is deducted annually over the life of the asset. So an asset that costs 10,000 and that has a residual value of 200 with a useable life of 4 years is depreciated by 2450 per year.Reducing balance: the amount of annual depreciation is a constant proportion of the cost of the asset.Depreciation has no effect on cash flow. It is just an accounting procedure.


Capital appreciation or depreciation

Capital appreciation or depreciation

The increase or decrease in the value of the individual's investment in the property.


Depreciation

Depreciation

(1) Decrease in value to real property improve-ments caused by deterioration or obsolescence. (2) A loss in value as an accounting procedure to use as a deduction for income tax purposes.


Earnings before interest, taxes, depreciation, and amortization (EBITDA)

Earnings before interest, taxes, depreciation, and amortization (EBITDA)

A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes. Depreciation and amortization expenses are not included in the costs.


Further Suggestions

Double declining balance depreciation method (DDB)
Accrued Depreciation
Currency depreciation
Depreciation
Double Declining Balance Method Of Depreciation
Currency depreciation
Capital depreciation
Double declining balance depreciation
Book Depreciation
Earnings before interest, taxes, and depreciation (EBITD)
Sum of the years digits depreciation
Asset Depreciation Range System
Depreciation tax shield
Recapture Of Depreciation
Straight line depreciation


 
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