Which method of depreciation is used by most U.S. companies for financial reporting purposes?
A)Straight-line
B)Units-of-production
C)Double-declining-balance
D)Modified accelerated cost recovery system (MACRS)

Question

Quizplus · Accepted Answer

Straight-line depreciation is the most commonly used method for financial reporting purposes. This method evenly spreads the cost of the asset over its useful life, making it easier to understand and compare with other companies' financial statements. The other methods listed (units-of-production, double-declining-balance, and MACRS) are used for tax reporting purposes.

Which Method of Depreciation Is Used by Most U