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Financial Terms | |
Double-declining-balance depreciation |
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Definition of Double-declining-balance depreciationDouble-declining-balance depreciationMethod of accelerated depreciation.
Related Terms:Accelerated depreciationAny depreciation method that produces larger deductions for depreciation in the accelerated depreciation(1) The estimated useful life of the fixed asset being depreciated is Accelerated depreciationAny of several methods that recognize an increased amount Accumulated depreciationA contra-fixed asset account representing the portion of the cost of a fixed asset that has been previously charged to expense. Each fixed asset account will have its own associated accumulated depreciation account. accumulated depreciationA contra, or offset, account that is coupled Accumulated depreciationThe sum total of all deprecation expense recognized to date Balance of Merchandise TradeThe difference between exports and imports of goods. ![]() Balance of paymentsA statistical compilation formulated by a sovereign nation of all economic transactions Balance of PaymentsThe difference between the demand for and supply of a country's currency on the foreign exchange market. Balance of Payments AccountsA statement of a country's transactions with other countries. Balance of tradeNet flow of goods (exports minus imports) between countries. Balance of TradeSee balance of merchandise trade. Balance sheetAlso called the statement of financial condition, it is a summary of the assets, liabilities, and BALANCE SHEETA “snapshot” statement that freezes a company on a particular day, like the last day of the year, and shows the balances in its asset, liability, and stockholders’ equity accounts. It’s governed by the formula: Balance SheetA financial statement showing the financial position of a business – its assets, liabilities and Balance SheetOne of the basic financial statements; it lists the assets, liabilities, and equity accounts of the company. The balance Sheet is prepared using the balances at the end of a specific day. balance sheetA term often used instead of the more formal and correct Balance sheetA report that summarizes all assets, liabilities, and equity for a company balance sheetFinancial statement that shows the value of the Balance SheetA financial report showing the status of a company's assets, liabilities, and owners' equity on a given date. Balance sheet exposureSee:accounting exposure. Balance sheet identityTotal Assets = Total Liabilities + Total Stockholders' Equity Balanced-Budget MultiplierThe multiplier associated with a change in government spending financed by an equal change in taxes. Balanced fundAn investment company that invests in stocks and bonds. The same as a balanced mutual fund. Balanced mutual fundThis is a fund that buys common stock, preferred stock and bonds. The same as a Balanced ScorecardA system of non-financial performance measurement that links innovation, customer and process measures to financial performance. balanced scorecard (BSC)an approach to performance Basic balanceIn a balance of payments, the basic balance is the net balance of the combination of the current common-size balance sheetbalance sheet that presents items as a percentage of total assets. Compensating balanceAn excess balance that is left in a bank to provide indirect compensation for loans Declining balanceAn accelerated depreciation method that calculates depreciation each year by applying a fixed rate to the asset’s book (cost–accumulated depreciation) value. depreciation stops when the asset’s book value reaches its salvage value. Declining-balanceA method of depreciation. DepreciationA non-cash expense that provides a source of free cash flow. Amount allocated during the DepreciationA technique by which a company recovers the high cost of its plant-and-equipment assets gradually during the number of years they’ll be used in the business. depreciation can be physical, technological, or both. DepreciationAn expense that spreads the cost of an asset over its useful life. depreciationRefers to the generally accepted accounting principle of allocating DepreciationReduction in value of fixed or tangible assets over some period DepreciationBoth the decline in value of an asset over time, as well as the gradual Depreciationa) Of capital stock: decline in the value of capital due to its wearing out or becoming obsolete. DepreciationThe systematic and rational allocation of the cost of property, plant, and equipment DepreciationAmortization of fixed assets, such as plant and equipment, so as to allocate the cost over their depreciable life. Depreciation AllowancesTax deductions that businesses can claim when they spend money on investment goods. Depreciation expenseAn expense account that represents the portion of the cost of an asset that is being charged to expense during the current period. Depreciation tax shieldThe value of the tax write-off on depreciation of plant and equipment. depreciation tax shieldReduction in taxes attributable to the depreciation allowance. Double-dip leaseA cross-border lease in which the disparate rules of the lessor's and lessee's countries let Double entryThe system of recording business transactions in two accounts. double-entry accountingSee accrual-basis accounting. Double-tax agreementAgreement between two countries that taxes paid abroad can be offset against Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working EBDDT - Earnings before depreciation and deferred taxesThis measure is used principally by market-value balance sheetFinancial statement that uses the market value of all assets and liabilities. Net cash balanceBeginning cash balance plus cash receipts minus cash disbursements. Off-balance-sheet financingFinancing that is not shown as a liability in a company's balance sheet. On-hand balanceThe quantity of inventory currently in stock, based on inventory Projected available balanceThe future planned balance of an inventory item, Receivables balance fractionsThe percentage of a month's sales that remain uncollected (and part of Remaining principal balanceThe amount of principal dollars remaining to be paid under the mortgage as of Straight line depreciationAn equal dollar amount of depreciation in each accounting period. STRAIGHT-LINE DEPRECIATIONA depreciation method that depreciates an asset the same amount for each year of its estimated straight-line depreciationThis depreciation method allocates a uniform straight-line depreciationConstant depreciation for each year of the asset’s accounting life. Sum-of-the-years'-digits depreciationMethod of accelerated depreciation. Target cash balanceOptimal amount of cash for a firm to hold, considering the trade-off between the tax benefit (of depreciation)the amount of depreciation deductible for tax purposes multiplied by the tax rate; tax shield (of depreciation)the amount of depreciation deductible Trial balanceA listing of all the accounts and their balances on a specified day. zero-balance accountRegional bank account to which just enough funds are transferred daily to pay each day’s bills. Zero-balance account (ZBA)A checking account in which zero balance is maintained by transfers of funds Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |