Difference between revisions of "Straight-line method"
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| − | [[Straight-line method]] (hereinafter, the ''Method'') is a method that allocates an equal amount of depreciation over an asset's period of usefulness. | + | [[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. |
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| + | ==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. | ||
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| + | ==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]]. | ||
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| + | ==Related lectures== | ||
| + | *[[Principles of Accounting]]. | ||
| + | *[[Corporate Accounting]]. | ||
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| + | [[Category: American Accounting]][[Category: International 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
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. 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.
