Flashcards
ch 17 key terms
Cards in this deck (18)
- 1Accelerated Cost Recovery SystemTax law enacted in 1981 for assets put in service from 1981-1986
- 2Accelerated DepreciationComputes more depreciation expense in the early years of the assets life than in the later years
- 3Accumulated DepreciationAmount of depreciation that has accumulated on the planet 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 the book value beginning each year times the rate
- 7DepreciationProcess of allocating the cost of an asset over the assets estimated life
- 8Depreciation expenseprocess involving asset Cost, estimated 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 SystemMost common system to calculate depreciation
- 12Modified accelerated Cost Recovery systemPart of tax reform act of 1986 that revised depreciation schedules for 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 asset
- 16Straight line rate1/ years of expected life
- 17trade in valueestimated value of a plant asset after depreciation is taken
- 18units of production methoddepreciation that estimates amount of depreciation based on usage
Information
- Description
- Flashcards on ch 17 key terms, created by Mlisa Hartzell on 26/09/2024.
- Created by
- Mlisa Hartzell
- Views
- 4
- Rating