Flashcards
Chapter 17
Cards in this deck (18)
- 1Accelerated Cost Recovery System (ACRS)Tax law enacted in 1981 for assets put in service from 1981 through 1986.
- 2Accelerated DepreciationComputes more depreciation expense in the early years of the asset's life than in the later years
- 3Accumulated DepreciationAmount of depreciation that has accumulated on plant and equipment assets
- 4Asset CostAmount company paid for the asset
- 5Book ValueCost less accumulated depreciation
- 6Declining-Balance MethodAccelerated method of depreciation.The depreciation each year is calculated by book value beginning each year times the rate
- 7DepreciationProcess of allocating the cost of an asset (less residual value) over the assets estimated life
- 8Depreciation ExpenseProcess involving asset cost, estimated useful life, and residual value (salvage or trade in value)
- 9Depreciation ScheduleTable showing the amount of depreciation expense, accumulated depreciation, and book value for each period of time for a plant asset
- 10Estimated useful lifeHow long asset will be in use
- 11General Depreciation System (GDS)Most common (MACRS) system to calculate depreciation
- 12Modified Accelerated Cost Recovery System(MACRS)Part of Tax Reform Act of 1986 that revised depreciation schedules of ACRS. Tax Bill of 1989, 2010 updates MACRS
- 13Residual ValueEstimated value of a plant asset after depreciation is taken (or end of useful life)
- 14Salvage ValueCost less accumulated depreciation
- 15Straight-line methodMethod of depreciation that spreads an equal amount of depreciation each year over the life of the assets
- 16Straight-line rateone divided by number of years of expected life
- 17Trade-In ValueEstimated value of a plant asset after depreciation is taken (or end of useful life)
- 18Units -of-Production methodDepreciation method that estimates amount of depreciation based on usage
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- Business/Economics Flashcards on Chapter 17, created by Trevor Sierks on 29/09/2025.
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- Trevor Sierks
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