Examlex
Describe the categories of economic interest groups, and provide examples of each.
Straight-Line Depreciation
A method of allocating the cost of a fixed asset evenly across its useful life, resulting in a consistent depreciation expense each accounting period.
Useful Life
Useful life refers to the estimated timeframe during which an asset is expected to be economically usable by an entity, with reasonable efficiency.
Average Rate of Return
A measure of the profitability of an investment, calculated as the average annual profit returned on an investment, expressed as a percentage of the initial investment cost.
Total Net Income
The total amount of earnings left over for a business after all expenses have been deducted from total revenues.
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