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This Is a Predictive Generalization Applied to a Person or Situation

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This is a predictive generalization applied to a person or situation. Based on the category in which we place someone or something and how that person or thing measures up against the personal constructs we apply, we predict what he, she, or it will do.


Definitions:

Useful Life

The estimated period over which an asset is expected to be usable by the owner.

Straight-Line Method

A depreciation method where an asset's cost is evenly spread across its useful life, resulting in equal depreciation expenses each period.

Accumulated Depreciation

This represents the total amount of depreciation expense that has been charged against a fixed asset since it was put into use.

Salvage Value

The approximate salvage worth of an asset at its lifespan's conclusion.

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