straight-line method Meaning in the Cambridge English Dictionary Cambridge dictionaries logo
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Meaning of “straight-line method” in the English Dictionary

"straight-line method" in Business English

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straight-line methodnoun [S]

uk   us   ACCOUNTING
a way of depreciating (= ​reducing the ​value of) a ​fixedasset in a company's ​accounts, in which the asset's ​value is ​reduced by the same ​amount each ​year. This ​amount is ​equal to the asset's ​value when you can no ​longer use it ​subtracted from its ​value when it is new ​divided by the ​number of ​years you use it for: Depreciation of ​equipment is ​calculated using the straight-line ​methodbased on the ​estimated useful ​life of the ​equipment.
(Definition of straight-line method from the Cambridge Business English Dictionary © Cambridge University Press)
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