For a plant asset that generates revenue evenly over time,which depreciation method best meets the expense recognition principle?

Question

Quizplus · Accepted Answer

The straight-line method best meets the expense recognition principle for a plant asset that generates revenue evenly over time because it helps to allocate the cost of the asset over its useful life in a systematic and rational manner. This method assigns an equal amount of depreciation expense to each year of the asset's useful life, which ensures that the cost of the asset is expensed properly in each year. Other methods such as double-declining-balance, modified accelerated, and units-of-production are more appropriate for assets that experience greater wear and tear in early years or generate revenue at varying rates over their useful lives.

For a Plant Asset That Generates Revenue Evenly Over Time,which