Difference between revisions of "Straight-line method"

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[[Straight-line method]] is a method recognizing equal amounts of interest expense for each period when amortizing a bond discount or premium.
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[[Straight-line method]] (hereinafter, the ''Method'') is one of the methods that distribute one sum of money in several equal amounts in equal periods of time. In calculation of [[depreciation]], the ''Method'' allocates an equal amount of [[depreciation]] over an asset's period of usefulness. In payments for [[bond]]s, the ''Method'' recognizes equal amounts of interest expense for each period when amortizing a bond discount or premium.
  
  
 
==Definitions==
 
==Definitions==
 
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 +
:[[Straight-line method]]. Method that allocates an equal amount of depreciation over an asset's period of usefulness.
 
:[[Straight-line method]]. A method recognizing equal amounts of interest expense for each period when amortizing a bond discount or premium.
 
:[[Straight-line method]]. A method recognizing equal amounts of interest expense for each period when amortizing a bond discount or premium.
  
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*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
  
==Related coursework==
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==Related lectures==
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*[[Principles of Accounting]].
 
*[[Corporate Accounting]].  
 
*[[Corporate Accounting]].  
  
[[Category: Accounting]][[Category: Articles]]
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[[Category: American Accounting]][[Category: International Accounting]][[Category: Articles]]
 
 
[[Straight-line method]] (hereinafter, the ''Method'') is a method that allocates an equal amount of [[depreciation]] over an asset's period of usefulness.
 
 
 
 
 
==Definitions==
 
According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
 
:[[Straight-line method]]. Method that allocates an equal amount of depreciation over an asset's period of usefulness.
 
 
 
==Related concepts==
 
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]].
 
 
 
==Related coursework==
 
*[[Principles of Accounting]].
 
 
 
[[Category: Accounting]][[Category: Articles]]
 

Latest revision as of 15:09, 5 January 2019

Straight-line method (hereinafter, the Method) is one of the methods that distribute one sum of money in several equal amounts in equal periods of time. In calculation of depreciation, the Method allocates an equal amount of depreciation over an asset's period of usefulness. In payments for bonds, the Method recognizes equal amounts of interest expense for each period when amortizing a bond discount or premium.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Straight-line method. Method that allocates an equal amount of depreciation over an asset's period of usefulness.
Straight-line method. A method recognizing equal amounts of interest expense for each period when amortizing a bond discount or premium.

Related concepts

Related lectures