| A | B |
|---|
| plant asset | Often referred to as fixed assets. Assets that will be used for a number of years in the operation of a business |
| depreciation expense | the portion of a plant asset’s cost that is transferred to an expense account in each fiscal period during a plant asset’s useful life |
| straight-line method of depreciation | charging an equal amount of depreciation expense for a plant asset in each year of useful life |
| estimated salvage value (estimated disposal value) | the amount an owner expects to receive when a plant asset is removed from use |
| estimated useful life | the number of years a plant asset is expected to be used |
| plant asset record | an accounting form on which a business records information about each plant asset |
| declining balance method of depreciation | multiplying the book value by a constant depreciation rate at the end of each fiscal period |
