Fichas
Chapter 17 Key terms
Fichas del conjunto (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 over the asset's estimated life
- 8Depreciation expenseProcess involving asset cost estimated useful life and residual value.
- 9Depreciation scheduleTable showing 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 valueEstimates 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
Información
- Descripción
- Key terms for Chapter 17: Depreciation
- Creado por
- BRANDI MCCAMMON
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