If an asset generates revenue evenly over time, the depreciation method best suited for this asset would be the:
A)double-declining balance method.
B)straight-line method.
C)units-of-production method.
D)expense method.

Question

Quizplus · Accepted Answer

The straight-line method allocates equal amounts of depreciation expense over the useful life of the asset, which is appropriate when the asset generates revenue evenly over time. Other methods, such as double-declining balance and units-of-production, allocate more depreciation expense in the early years of the asset's life and less in the later years. The expense method is not a recognized depreciation method.

If an Asset Generates Revenue Evenly Over Time, the Depreciation