The-definition.com

Definition

Straight-line

Under the straight-line method, companies expense the same amount of depreciation for each year of the asset’s useful life. It is measured solely by the passage of time. In order to compute depreciation expense under the straight-line method, companies need to determine depreciable cost.  Under the straight line method, to determine annual depreciation expense, we divide depreciable cost by the asset’s useful life.

Share it:  Cite

More from this Section

  • Par value stock
    Par value stock is capital stock to which the charter has assigned a value per share. ...
  • Continuous audit
    A continuous audit or a detailed audit, as it is sometimes called, is an audit which ...
  • Accountant
    Accountant is a person who has the education and experience to evaluate the significance ...
  • Management Auditing
    William P. Leonard defines it: “Management Auditing is a comprehensive ...
  • Vertical analysis
    Vertical analysis, also called common-size analysis, is a technique that expresses each ...