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RA 2321 Section 5

Definition of terms.

Section 5

SEC. 5. Definition of terms.—For purpose of this Act, the following terms are defined as follows: “Cost” means the amount of money actually paid for property or services or their cash value at the time of the transaction. “Units of property” means those items of property which when retired, with or without placement, are accounted for by crediting the book cost thereof to the property account in which included. “Straight-line method” of depreciation means of spreading of depreciation of depreciable property in equal amounts monthly over its estimated service life. “Rate base” means the money honestly and prudently invested in the used and useful property and equipment less accrued depreciation plus one-twelfth of the annual cash operating expenses as working capital.

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Other provisions in RA 2321

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026

CitationRA 2321 Section 5 (LawPlayer, data as of July 4, 2026)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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