| A | B |
|---|
| Accumulated depreciation | Total depreciation recorded up to a specific point in time. |
| Appraisal value | estimated worth. |
| Book value | The value of a plant asset according to the records of the business; original cost minus accumulated depreciation. |
| Current assets | Assets that are used up or converted to cash during the normal operating cycle of a business. |
| Declining-balance method | an accelerated method of depreciation. |
| Depreciable cost | The total amount of the cost of a plant asset to be depreciated (original cost less disposal value). |
| Depreciation | A systematic procedure for allocating the cost of a plant asset to the accounting periods in which the firm receives service from that asset. |
| Intangible assets | long-lived assets that have no physical substance. |
| Property plant and equipment assets | long-lived assets that are used in the production or sale of other assets or services over several accounting periods. |
| Disposable or Salvage value | The estimated value of a plant asset at the time of its disposal. |
| Straight-line depreciation method | a method of calculating depreciation in which an equal amount of depreciation is charged off for each year of the asset’s useful life. |
| Sum-of-the-year-digits method | a method of calculating depreciation in which a plant asset’s depreciable cost is multiplied by fractions related to the length of the asset’s useful life. |
| Units-of-production method | a method of calculating depreciation in which the estimated depreciation per unit of use is determined and then multiplied by the actual units of use for the period. |
