Flying High Air acquires a new aircraft. It has an estimated life of 10 years and should last for at least 20,000 hours of flight. What is the most appropriate method of depreciation to properly match revenues and expenses?

Question

Quizplus · Accepted Answer

The units-of-production method is most appropriate for the aircraft as it depreciates the asset based on its usage (in this case, hours of flight), which directly correlates with the generation of revenue, thus properly matching revenues and expenses.

Flying High Air Acquires a New Aircraft