If an asset generates revenues evenly over its useful life, which amortization method should be used?
A)Capital cost allowance
B)Declining-balance
C)Units-of-activity
D)Straight-line

Question

Quizplus · Accepted Answer

The straight-line method is the best choice when an asset generates revenues evenly over its useful life. This is because the method evenly distributes the cost of the asset over its useful life, resulting in a consistent expense each period.

If an Asset Generates Revenues Evenly Over Its Useful Life