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Accelerated Depreciation
Any method that shifts depreciation forward in an asset’s life. Accelerated methods increase early charges and reduce those that come later, keeping total depreciation constant.
Tax Accounting
A method of accounting that focuses on taxes rather than the appearance of public financial statements.
Deferred Tax Liability
Deferred Tax Liability is a tax that is assessed or is due for the current period but has not yet been paid, often resulting from timing differences between book and tax deductions.
Economic Depreciation
A decrease in the value of an asset due to changes in market conditions or technology, as opposed to physical wear and tear.
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