depreciation Flashcards
_____ is the loss of value for a fixed asset between two periods.
depreciation
____ is a decline in the value of a property due to general wear and tear or obsolescence.
depreciation
Amount of value that a possession losses over time.
depreciation
What are the two classifications of depreciation?
time independent, time dependent
What are the two methods under time independent?
working hours method, unit production method
What are the two categories under time dependent?
Uniform methods, non-uniform methods
What are the two methods under uniform methods?
straight line method, sinking fund method
What are the three methods under non-uniform methods?
declining balance method, sum of years digit method, MACRS method
____ method assumes that the loss in value is directly proportional to the age of the property.
straight line method
_____ is a technique for depreciating an asset while generating enough money to replace it at the end of its useful life.
sinking fund method
_____ is an accelerated depreciation method in which the depreciation expense declines with age of the fixed asset.
declining balance method
