Straight-line method

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.

Related lectures

• Principles of Accounting.
• Corporate Accounting.