Depreciation is an indispensable part of accounting and tax law. Unlike amortization which does not have any subtypes, there are different types of depreciation methods. Simplest, most used and popular method of charging depreciation is the straight-line method.
Simply divide the depreciable cost by the useful life. There's more to depreciation than just the definition. Traditionally, financial accounting textbooks tend to focus on the straight-line method because it is easy to calculate. To make the topic of Depreciation even easier to understand, we created a collection of premium materials called AccountingCoach PRO. Thomason holds a Bachelor and Master of Science in accounting. You can also get Movie HD App Download in this blog for free. Learn more in CFIs Accounting Courses. Find the answers to these and many other question below.