Which of the following amortization methods is most commonly used?

Question

Quizplus · Accepted Answer

Straight-line amortization is the most commonly used method as it is simple to calculate and understand. It involves dividing the cost of the asset by its useful life to determine an equal amount of amortization expense each period. The other two options are less commonly used and may only be appropriate for specific types of assets. Double declining balance involves higher amortization expense in the early years of an asset's life and decreases over time. Activity based amortization is based on actual usage or output of the asset and can be complex to calculate.

Which of the Following Amortization Methods Is Most Commonly Used