depreciation Flashcards

1
Q

depreciable cost

A

cost of asset - residual value

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2
Q

straight line (assets generating revenues evenly)

A

depreciable cost / useful life (years)

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3
Q

units of production (assets wearing out due to use…)

A

depreciable cost / useful life (units) => * activity for period

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4
Q

DBB rate

A

1 / useful life (years) => *2

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5
Q

Double declining method (assets generating more early)

A

DBB rate * book value

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6
Q

Book value

A

cost - accumulated depreciation

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