# Depreciation

Business / Finance / Depreciation: In terms of economics: The measure of cost of capital consumption during production, e.g., machine and equipment wear. In terms of finance: The process of amortization of fixed assets (equipment) to spread the cost over the depreciable life of the assets.

### Sum-Of-The-Years-Digits (SYD) Depreciation Method

Business / Accounting / Sum-Of-The-Years-Digits (SYD) Depreciation Method: The accelerated depreciation method in which a constant balance (cost minus salvage value) is multiplied by a declining depreciation rate. MORE

### Accumulated Depreciation

Business / Accounting / Accumulated Depreciation: The total depreciation recorded on an asset since its acquisition: a contra account deducted from the original cost of an asset on the balance sheet. MORE

### Sum-Of-The-Years-Digits Depreciation

Business / Finance / Sum-Of-The-Years-Digits Depreciation: A method of recording accelerated depreciation. Also called the sum-of-digits method, it allows the depreciation of an asset based on an inverted scale of the total digits of the asset's useful life. MORE

### Accelerated Depreciation

Business / Finance / Accelerated Depreciation: Any depreciation method that produces larger deductions for depreciation in the early years of a asset's life. Accelerated cost recovery system (ACRS), which is a depreciation schedule allowed for tax MORE

### Double-Declining-Balance Depreciation Method (DDB)

Business / Finance / Double-Declining-Balance Depreciation Method (DDB): Method of accelerated depreciation. MORE

### Straight-Line Depreciation

Business / Accounting / Straight-Line Depreciation: Depreciating something by the same (ie. fixed) amount every year rather than as a percentage of its previous value. Example: a vehicle initially costs \$10,000. If you depreciate it at a rate of \$2000 MORE