oboloo Glossary

Straight Line Method Depreciation

oboloo Glossary

Straight Line Method Depreciation

The Straight Line Method of Depreciation is an accounting technique used for determining the decrease in value of an asset over time. It entails dividing the cost of the asset, minus any salvage value, by the useful life of the asset to calculate a regular, equal depreciation expense. It’s one of the simplest and most commonly used methods of calculating depreciation because it’s easy to understand, easy to administer, and provides a consistent cash flow stream. Plus, it often reduces taxable income due to its reliability.