Depreciation Accounting Flashcards

Depreciation Accounting Flashcards
1/11 (missed) 0 0
Create Your Account To Continue Studying

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access
Methods for calculating depreciation

Unit-of-production method

Straight line method

Double declining balance method

Got it
Accumulated Depreciation
This contra-asset account is created for each asset to record how much the asset will depreciate over the course of an accounting period.
Got it
Accumulated Depreciation Formula
(Formula Book value of the asset - salvage value of the asset) / asset's useful life, noted in years
Got it
Accelerated Depreciation
This kind of depreciation occurs if you lose more than the standard amount of value over the first years that you use an item.
Got it
Double Declining Balance Depreciation Formula
Take the year's basic depreciation percentage, double it and then multiply that number by your item's present value.
Got it
11 cards in set

Flashcard Content Overview

You can use the flashcards in this set as study tools to help you review the role of depreciation in accounting. You'll be able to look at methods for calculating depreciation, including straight line depreciation, unit-of-production depreciation and double declining balance depreciation. The formulas for these methods will also be covered by these flashcards. Both accumulated and accelerated depreciation will also be reviewed by these flashcards. Additionally, you'll be able to go over the way businesses use residual value to offset depreciation.

Additional Study

You can take the opportunity to further develop your understanding of these subjects by checking out some of these short, easy-to-follow lessons:

You can also explore this engaging course to go over some of the mathematical skills you may need to calculate depreciation and other accounting topics:

Front
Back
Double Declining Balance Depreciation Formula
Take the year's basic depreciation percentage, double it and then multiply that number by your item's present value.
Accelerated Depreciation
This kind of depreciation occurs if you lose more than the standard amount of value over the first years that you use an item.
Accumulated Depreciation Formula
(Formula Book value of the asset - salvage value of the asset) / asset's useful life, noted in years
Accumulated Depreciation
This contra-asset account is created for each asset to record how much the asset will depreciate over the course of an accounting period.
Methods for calculating depreciation

Unit-of-production method

Straight line method

Double declining balance method

Residual Value
Businesses use this process to write off the depreciation associated with long-term assets, allowing them to compensate for the item's loss of value.
Straight Line Method of Depreciation
The simplest method of depreciation; assumes the same rate of depreciation each year over the course of the life of an asset.
Straight Line Depreciation Formula
(Cost of the asset - asset's residual value) / Asset's useful life = annual depreciation expense
Unit-of-Production Method of Depreciation
This kind of depreciation uses a two-step process. It can be used to find depreciation for items that are considered useful based on their output capability, not the number of years they're used.
Double Declining Balance Method of Depreciation
A type of depreciation that we see when items depreciate quickly in the beginning, with depreciation slowing as the asset ages.
Depreciation
This refers to the process of calculating the value an asset, like equipment, loses throughout its life.

To unlock this flashcard set you must be a Study.com Member.
Create your account

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member

Already a member? Log In

Support