Depreciation: Reduction of the value of real estate or other property. Vacation properties are not necessarily prone to depreciation, though they are likely to cost much less on the resale market than what the developer was able to charge for them initially.

 

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Depreciation: Reduction of the value of real estate or other property. Vacation properties are not necessarily prone to depreciation, though they are likely to cost much less on the resale market than wha . . . View Full Definition

Declining-Balance Depreciation Method: An accelerated depreciation method in which an asset's book value is multiplied by a constant depreciation rate (such as double the straight-line percentage, in the case of double-declining-balance.)

Double-Declining-Balance Depreciation Method (DDB): Method of accelerated depreciation.

Straight-Line Depreciation: Allows shareholder to cast all of the shareholder's votes for each candidate for the board of directors.

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 allow . . . View Full Definition

Accumulated Depreciation: The total amount of depreciation expense recorded to date for the company's fixed assets. On the balance sheet, this value is subtracted from the gross value of Property, Plant and Equipment . . . View Full Definition

Accumulated Depreciation Account: This is an account held in the nominal ledger which holds the depreciation of a fixed asset until the end of the asset's useful life (either because it has been scrapped or sold). It is cred . . . View Full Definition

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 use . . . View Full Definition

Straight-Line Depreciation Method: The depreciation method in which the cost of an asset is allocated equally over the periods of an asset's estimated useful life.

Earnings Before Interest, Taxes, Depreciation, And Amortization (EBITDA): A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of i . . . View Full Definition