straight line depreciation
Definition
Method of computing depreciation in which the depreciable cost (historical or purchase price) of a tangible capital asset is reduced by an equal amount in each accounting period (usually a year) over the asset's estimated useful life. Straight line depreciation is computed as a fixed expense by dividing the asset's depreciable cost by the number of years the asset is estimated to remain in service. Suitable where the usage of an asset remains generally uniform despite the asset's age, it is the simplest and most common method of computing depreciation. For easy computation, the depreciation rate may be converted to a percentage of the depreciable cost. See also declining balance depreciation.
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straight line depreciation is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
straight line depreciation appears in the definitions of the following terms: declining balance depreciation, double declining-balance depreciation, accelerated depreciation and accelerated cost recovery system (ACRS)
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