diminishing balance method of depreciation

简明释义

余额递减折旧方法

英英释义

例句

1.By applying the diminishing balance method of depreciation (递减余额法折旧), the firm was able to show lower profits in the initial years, which helped reduce its tax liability.

通过应用diminishing balance method of depreciation (递减余额法折旧)，公司能够在初期显示出较低的利润，从而帮助减少税务负担。

2.The diminishing balance method of depreciation (递减余额法折旧) is particularly useful for assets that lose value quickly, such as technology equipment.

对于快速贬值的资产，例如技术设备，diminishing balance method of depreciation (递减余额法折旧)特别有用。

3.The company decided to use the diminishing balance method of depreciation (递减余额法折旧) for its fleet of vehicles to better match the expense with the revenue generated.

公司决定对其车辆队伍使用diminishing balance method of depreciation (递减余额法折旧)，以更好地将费用与产生的收入相匹配。

4.Investors often prefer companies that utilize the diminishing balance method of depreciation (递减余额法折旧) because it reflects a more realistic asset value over time.

投资者通常更喜欢采用diminishing balance method of depreciation (递减余额法折旧)的公司，因为这反映了资产随时间变化的更真实价值。

5.During the audit, the accountant verified that the diminishing balance method of depreciation (递减余额法折旧) was applied consistently across all fixed assets.

在审计过程中，会计师核实了diminishing balance method of depreciation (递减余额法折旧)在所有固定资产中一致应用。

作文

The diminishing balance method of depreciation is a widely used accounting technique that allows businesses to allocate the cost of an asset over its useful life. This method is particularly beneficial for assets that lose value more rapidly in the earlier years of their usage. In essence, the diminishing balance method of depreciation calculates depreciation based on a fixed percentage of the asset's remaining book value at the beginning of each period. This results in larger depreciation expenses in the initial years and progressively smaller amounts as the asset ages. For instance, consider a company that purchases a piece of machinery for $10,000 with an expected useful life of five years and a depreciation rate of 20%. Under the diminishing balance method of depreciation, the first year's depreciation would be $2,000 (20% of $10,000). The book value of the machinery at the end of the first year would then be $8,000. In the second year, the depreciation expense would be $1,600 (20% of $8,000), and this process continues until the asset is fully depreciated or disposed of. One of the main advantages of using the diminishing balance method of depreciation is that it reflects the actual wear and tear of an asset more accurately than the straight-line method, which spreads the cost evenly over the asset's life. This method is particularly useful for businesses that invest heavily in technology and equipment that quickly become obsolete. By recognizing higher expenses in the early years, companies can better match their revenues and expenses, leading to a more accurate representation of financial performance. However, there are also some drawbacks to consider. For example, the diminishing balance method of depreciation can complicate financial reporting, particularly for companies with multiple assets and varying depreciation rates. Additionally, since this method results in lower net income in the early years, it may affect a company's ability to attract investors or secure financing. In conclusion, the diminishing balance method of depreciation is a valuable tool for businesses looking to manage their assets' depreciation effectively. While it offers a more realistic view of an asset's value over time, companies must weigh its advantages against potential challenges in financial reporting and investor relations. Understanding this method is crucial for accountants and business owners alike, as it plays a significant role in financial decision-making and strategic planning.

递减余额折旧法是一种广泛使用的会计技术，允许企业在资产的使用寿命内分配成本。这种方法特别适合于在使用的早期年份价值损失较快的资产。实际上，递减余额折旧法根据每个期间开始时资产剩余账面价值的固定百分比来计算折旧。这导致在初始年份中折旧费用较大，而随着资产的老化，折旧费用逐渐减少。例如，考虑一家购买价值10,000美元的机械设备的公司，预计使用寿命为五年，折旧率为20%。根据递减余额折旧法，第一年的折旧将为2,000美元（10,000美元的20%）。因此，第一年末该机械的账面价值将为8,000美元。在第二年，折旧费用将为1,600美元（8,000美元的20%），这一过程将持续到资产完全折旧或处置。使用递减余额折旧法的主要优点之一是它比直线法更准确地反映了资产的实际磨损和损耗。直线法将成本均匀分布在资产的整个生命周期内。对于那些在技术和设备上大量投资、快速过时的企业，这种方法尤其有用。通过在早期年份确认更高的费用，公司可以更好地匹配收入和支出，从而更准确地反映财务表现。然而，也有一些缺点需要考虑。例如，递减余额折旧法可能会使财务报告变得复杂，特别是对于拥有多项资产和不同折旧率的公司。此外，由于这种方法在早期年份导致净收入较低，因此可能影响公司的吸引投资者或获得融资的能力。总之，递减余额折旧法是企业有效管理资产折旧的宝贵工具。尽管它提供了对资产随时间变化的更现实的看法，但公司必须权衡其优点与财务报告和投资者关系中的潜在挑战。理解这种方法对于会计师和企业主来说至关重要，因为它在财务决策和战略规划中发挥着重要作用。