Choose the statement which best describes the straight-line method of depreciation.
A) Depreciation is a fixed percentage of the carrying value of the asset.
B) Depreciation is allocated equally over each year of the asset's life.
C) Depreciation expense is greater at the beginning of the asset's life.
D) Both A and C.

Question

Quizplus · Accepted Answer

The straight-line method of depreciation allocates an equal amount of depreciation expense over each year of the asset's useful life. It does not use a fixed percentage of the carrying value of the asset (A) and depreciation expense is not greater at the beginning of the asset's life (C).

Choose the Statement Which Best Describes the Straight-Line Method of Depreciation