declining-balance depreciation

简明释义

下降平衡折旧法［折旧方法之一］

英英释义

例句

1.The accountant explained that declining-balance depreciation results in larger depreciation expenses initially.

会计解释说，递减余额折旧会导致最初的折旧费用较大。

2.Investors often prefer companies that use declining-balance depreciation as it can improve cash flow in the short term.

投资者通常更喜欢使用递减余额折旧的公司，因为这可以改善短期现金流。

3.For tax purposes, the firm calculated its assets using declining-balance depreciation to take advantage of accelerated write-offs.

为了税务目的，该公司使用递减余额折旧计算其资产，以利用加速折旧的优势。

4.The company opted for declining-balance depreciation to maximize its tax deductions in the first few years of the asset's life.

公司选择了递减余额折旧，以在资产的前几年最大化税收扣除。

5.Using declining-balance depreciation allows businesses to reflect the higher usage of an asset in its early years.

使用递减余额折旧可以让企业反映出资产在早期使用中的更高消耗。

作文

In the world of accounting and finance, understanding various methods of asset depreciation is essential for both businesses and investors. One such method is declining-balance depreciation, which allows companies to allocate a larger portion of an asset's cost as an expense in the early years of its useful life. This approach not only reflects the rapid decline in value that many assets experience shortly after purchase but also provides tax benefits by reducing taxable income in those initial years.The declining-balance depreciation method differs from the straight-line depreciation method, where the same amount of depreciation expense is recorded each year over the asset's life. Instead, the declining-balance depreciation method applies a fixed percentage to the asset's remaining book value each year. This means that the depreciation expense decreases over time, reflecting the diminishing value of the asset.For example, consider a company that purchases machinery for $10,000 with a useful life of five years and an estimated salvage value of $1,000. If the company chooses to use the double declining balance method, it would first calculate the straight-line depreciation rate, which is 20% (100% divided by 5 years). The double declining balance rate would then be 40% (double the straight-line rate).In the first year, the depreciation expense would be calculated as 40% of the initial cost of $10,000, resulting in a depreciation expense of $4,000. The book value at the end of the first year would then be $6,000 ($10,000 - $4,000). In the second year, the depreciation expense would be 40% of the new book value of $6,000, resulting in a depreciation expense of $2,400. This pattern continues until the asset is fully depreciated or reaches its salvage value.The primary advantage of declining-balance depreciation is that it allows companies to recover the cost of their investments more quickly, which can be particularly beneficial for assets that lose value rapidly. Additionally, this method aligns expenses with revenues generated by the asset, providing a more accurate picture of profitability during the asset's early years.However, there are also disadvantages to consider. For one, the declining-balance depreciation method can complicate financial statements, making it harder to compare performance across different periods. Furthermore, businesses must carefully track the book value of their assets to ensure accurate calculations.In conclusion, understanding declining-balance depreciation is crucial for anyone involved in financial management. It offers a unique way to account for the decreasing value of assets, allowing for greater flexibility in managing expenses and taxes. By recognizing the advantages and disadvantages of this method, businesses can make informed decisions about how to best manage their assets and optimize their financial performance.

在会计和金融的世界中，理解各种资产折旧方法对企业和投资者至关重要。其中一种方法是递减余额折旧，它允许公司在资产的早期使用年限内将较大部分的成本作为费用分配。这种方法不仅反映了许多资产在购买后不久经历的快速贬值，而且通过减少初始年份的应纳税收入提供了税收利益。递减余额折旧方法与直线折旧方法不同，后者在资产的使用寿命内每年记录相同金额的折旧费用。相反，递减余额折旧方法每年将固定百分比应用于资产的剩余账面价值。这意味着折旧费用随时间的推移而减少，反映了资产价值的降低。例如，考虑一家购买价值10,000美元的机械设备，预计使用寿命为五年，估计残值为1,000美元。如果公司选择使用双倍递减余额法，它将首先计算直线折旧率，即20%（100%除以5年）。然后，双倍递减余额率将为40%（直线率的两倍）。在第一年，折旧费用将按40%计算，基于初始成本10,000美元，结果为4,000美元的折旧费用。在第一年结束时，账面价值将为6,000美元（10,000美元 - 4,000美元）。在第二年，折旧费用将是40%新账面价值6,000美元，结果为2,400美元的折旧费用。这个模式持续直到资产完全折旧或达到其残值。递减余额折旧的主要优点是它允许公司更快地回收投资成本，这对于迅速贬值的资产尤其有利。此外，这种方法将费用与由资产产生的收入相匹配，提供了资产早期利润的更准确图景。然而，也有一些缺点需要考虑。首先，递减余额折旧方法可能会使财务报表复杂化，使得在不同期间之间比较业绩变得更加困难。此外，企业必须仔细跟踪其资产的账面价值，以确保准确的计算。总之，理解递减余额折旧对任何参与财务管理的人都至关重要。它提供了一种独特的方式来核算资产的贬值，使企业在管理费用和税收方面具有更大的灵活性。通过认识这种方法的优缺点，企业可以做出明智的决定，如何最好地管理其资产并优化财务表现。