Definitions
There is 1 meaning of the phrase
Declining Balance Method.
Declining Balance Method - as a noun
A way of calculating the depreciation of an asset whereby one subtracts a certain percentage of its current value each year.
Example: "When using the declining balance method, the salvage value is not considered in determining the annual depreciation, but the book value of the asset being depreciated is never brought below its salvage value, regardless of the method used."
Synonyms (Exact Relations)
declining balance method of depreciationExample Sentences
"The declining balance method is a popular depreciation method used in accounting."
"Under the declining balance method, the asset's value is depreciated at a faster rate in the early years."
"Using the declining balance method, the book value of the asset decreases gradually over time."
"Depreciation expense can be calculated using the declining balance method."
"The declining balance method allows businesses to recognize higher depreciation expenses in the early years of an asset's life."
