Companies that comply with generally accounting principles, called GAAP, may opt to use the declining balance method to calculate depreciation on a particular asset or group of assets. The declining ...

When a business acquires an asset to be used in its operations, the cost of the asset is generally not expensed all at once. Rather, the cost is depreciated over a period of time that depends on the ...

Accrual-based accounting requires a business to match the expenses it incurs with the revenues it generates each accounting period. Because a long-term asset, such as a piece of equipment, contributes ...

Straight line method spreads an asset's cost evenly over its life, aiding in clear financial planning. Using this method simplifies financial statements, making a company's health easier to assess.

Double declining balance depreciation is a method of depreciating large business assets quickly. Learn how and when to use it. The double declining balance (DDB) depreciation method is an accounting ...