Definitions for

**"Straight line depreciation"**A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year.

It is an accounting procedure whereby each year's depreciation is equal to the other years. If an asset has an expected useful life of 5 years then 20 percent of its original cost is charged against revenues each year. If the asset has an expected useful life of 10 years, then 10 percent of its adjusted cost is charged against revenues each year.

An equal dollar amount of depreciation in each accounting period.