Straight-Line Method definition
Straight-Line Method means the method of calculating depreciation of a capital asset in which the historical cost of the capital asset, less any residual value, is pro-rated over the useful life of the item. (Historical cost less residual value/useful life = annual depreciation expense.)
Straight-Line Method means a method of depreciation that is calculated by using an item's acquisition cost, less its salvage value, divided by its useful life, measured in years; this method produces a single depreciation amount that is used for each year of the item's useful life;
Straight-Line Method means a method of computing depreciation in which the depreciable cost (historical or purchase price)of non-consumable stores is reduced by an equal amount in each accounting period (usually a year) over the asset's estimated useful life. Straight line depreciation is computed as a fixed expense by dividing the asset's depreciable cost by the number of years the asset is estimated to remain in service.
More Definitions of Straight-Line Method
Straight-Line Method means the method where depreciation results in a constant charge over the Useful Life if the asset’s residual value does not change.
Straight-Line Method means we assigned an equal amount of cost to each year of operation by simply dividing the total cost by the number of years of operation.