Annuity Method Of Depreciation

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Definition: Annuity Method Of Depreciation


Annuity Method Of Depreciation


Full Definition of Annuity Method Of Depreciation


A practice for depreciating assets with regular cash flows. The annuity method calculates the amount of depreciation by multiplying the cash flow rate of return by the book value of the asset, and subtracting that result from the cash flow for the current accounting period. Also called compound interest method of depreciation.


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Definition Sources


Definitions for Annuity Method Of Depreciation are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.