depreciation Flashcards
1
Q
depreciable cost
A
cost of asset - residual value
2
Q
straight line (assets generating revenues evenly)
A
depreciable cost / useful life (years)
3
Q
units of production (assets wearing out due to use…)
A
depreciable cost / useful life (units) => * activity for period
4
Q
DBB rate
A
1 / useful life (years) => *2
5
Q
Double declining method (assets generating more early)
A
DBB rate * book value
6
Q
Book value
A
cost - accumulated depreciation
