Double declining-balance method
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Double declining-balance method is an accelerated depreciation method that uses twice the straight-line rate multiplied by the book value of asset to calculate depreciation expense. Residual value is not subtracted from the cost of an asset in this calculation.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Double declining-balance method. An accelerated depreciation method that uses twice the straight-line rate multiplied by the book value of asset to calculate depreciation expense. Residual value is not subtracted from the cost of an asset in this calculation.
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.
