Entity: STRAIGHT-LINE-METHOD
The Straight-Line Method is a common approach used in accounting to calculate depreciation of assets by evenly spreading the cost over the asset's useful life.
STRAIGHT-LINE METHOD
Etymology
The term 'Straight-Line Method' originates from the concept of calculating depreciation in a linear manner over the useful life of an asset.
Definition
The Straight-Line Method is a technique used in accounting to determine the depreciation of assets by evenly distributing the cost over the asset's useful life.
Historical Context
The Straight-Line Method has been a fundamental principle in accounting practices for decades, providing a systematic way to allocate the cost of assets over time.
Cultural Significance
This method is widely accepted and utilized in financial reporting, offering a straightforward and predictable approach to depreciation calculations.
Related Concepts
- Accelerated Depreciation
- Double Declining Balance Method
See Also
A method of calculating periodic depreciation that involves subtracting the scrap value from the cost of a depreciable asset and dividing the resultant figure by the anticipated number of periods.