reducing balance


Definitions (2)

1.Accounting: Method of asset depreciation based on a percentage of its net book value which decreases every year.
2.Banking: Method of computing interest amount on the principal balance (and not on the original loan amount) that reduces with repayment of each loan installment.

Use reducing balance in a sentence

Mentioned in these terms

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z