Flashcards
Chapter 18
Flashcards do conjunto (20)
- 1Depreciationdecrease in value due to wear and tear, decay, decline in price, etc.
- 2Three key factors involved in a depreciation expense:1. Asset cost
2. Estimated useful life
3. Residual value (salvage / trade-in) - 3Asset CostThe amount the company paid for the asset including freight and charges relating to the asset.
- 4Estimated Useful LifeThe number of years (time periods) for which the company can use the asset
- 5Residual value (salvage / trade-in)Expected cash value
- 6Accumulated DepreciationAmount of the asset's depreciation taken to date
- 7Straight Line MethodDistribution of the same amount of expense to each period of time
- 8Depreciation Expense Formula
- 9Units-of-Production MethodDetermined by how much the company uses the asset
- 10Depreciation per unit calculation
- 11Declining Balance MethodTakes larger amounts of depreciation expense in the earlier years of the asset (up to 2x the straight-line rate)
- 12Straight line depreciation expense each year
- 13Accelerated Cost Recovery ServiceRelates to assets put in service from 1981 through 1986
- 14Modified Accelerated Cost Recovery SystemRelates to property placed into service after December 31, 1986
- 15General Depreciation SystemUsed by businesses to calculate depreciation for tax purposes based on the tax laws of 1986, 1989 and 2020
- 16Book Valuethe value of a security or asset as entered in a company's books.
- 17Accelerated DepreciationAllows greater deprecation expenses in the early years of the life of an asset
- 18Depreciation ExpenseThe amount deducted from gross profit to allow for a reduction in the value of something because of its age or how much it has been used
- 19Depreciation ScheduleA table that shows you how much each of your assets will be depreciated over the years
- 20Trade-in ValueValuation of item at time of trade
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- Descrição
- Beginner Business 214 FlashCards sobre Chapter 18 , criado por J H em 18-09-2020.
- Criado por
- J H
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