A graph is set up with "yearly depreciation expense" on the vertical axis and "time" on the horizontal axis.Assuming linear relationships, how would the graphs for straight-line and declining-balance depreciation, respectively, be drawn?

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Quizplus · Accepted Answer

In straight-line depreciation, the yearly expense is constant, so the graph is a horizontal line. In declining-balance depreciation, the expense decreases over time, so the graph slopes down to the right.

A Graph Is Set Up with "Yearly Depreciation Expense" on the Vertical