Definitions for "Straight-line Depreciation"
A method of depreciation, which takes the depreciable cost of an asset and divides it by the asset's useful life to determine the annual depreciation expense. Other forms of depreciation include sum of the years digits and double declining balance.
A method of depreciation in which an equal amount of depreciation is taken annually over an asset's economic life.
An accounting procedure that sets the rate of depreciation as a fixed percentage of the amount to be depreciated; the percentage stays the same each year. Back to the Top