The GAAP approves four different methods for depreciating business assets: the straight-line method, the units of production method, the declining balance method and the sum-of-the-year's-digits ...

The straight-line method is the simplest way to account for the amortization of a bond on a company's financial statements. This method attributes equal interest expense to every accounting period ...

Straight line method spreads an asset's cost evenly over its life, aiding in clear financial planning. Using this method simplifies financial statements, making a company's health easier to assess.

Accrual-based accounting requires a business to match the expenses it incurs with the revenues it generates each accounting period. Because a long-term asset, such as a piece of equipment, contributes ...

The coupon rate a company pays on a bond is the most obvious cost of debt financing, but it isn't the only cost of financing. The price at which a company sells its bonds -- and the resulting premium ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee ...

Accelerated depreciation allows businesses to write off the cost of an asset more quickly than the traditional straight-line ...