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

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Quizplus · Accepted Answer

The straight-line method of depreciation is the most appropriate method for a plant asset that generates revenue evenly over time as it follows the expense recognition principle by allocating the same amount of depreciation expense each year throughout the asset's useful life. This method ensures that the expense is recognized in the same proportion as the revenue generated by the asset. Consequently, this method is the most commonly used depreciation method for business assets because it provides a clear and constant pattern of depreciation over the asset's useful life, making it easy to understand and apply for accounting and taxation purposes.

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