Practice question · Fill in the blanks
Complete the depreciation formula.
Straight-line depreciation equals cost minus ______ divided by useful ______.
Word bank: salvage · life · revenue · margin
Hints
- Subtract the expected residual value before spreading the cost.
- The remainder is divided by the useful life.
Show the answer
Straight-line depreciation equals cost minus salvage divided by useful life.
Why
, the formula that converts a purchase into a per-period expense.
Practise Accounting for Assets
The app has 5 more questions on this lesson, and keeps your place in the course. Business I is free to start.
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