Flashcards
CH. 17 Flashcards
Cards in this deck (19)
- 1Accelerated cost recovery systemTax law enacted in 1981 for assets put in service from 1981 through 1986
- 2Accelerated depreciationComputes more depreciation expense in the early years of the assets life
- 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 over the asset's estimated life.
- 8Depreciation ExpenseProcess involving asset cost, estimated useful life, and residual value
- 9Depreciation ScheduleTable showing amount of depreciation exprense, 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 SystemMost common system to calculate depreciation
- 12Modified Accelerated Cost Recovery SystemPart of Tax Reform Act of 1986 that revised depreciation schedules of ACRS.
- 13Residual ValueEstimated value of a plant asset after depreciation is taken
- 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
- 18Units-of-Production MethodDepreciation method that estimates amount of depreciation based on usage.
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- Flashcards on CH. 17 Flashcards, created by Jack Lubischer on 28/09/2024.
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- Jack Lubischer
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