The depreciation method in which the depreciable cost of an asset is apportioned equally over its estimated life in terms of month or years is called the:
A)double-declining-balance method.
B)units-of-production method.
C)amortization method.
D)straight-line method.

Question

Quizplus · Accepted Answer

The straight-line method is the only option that involves apportioning the depreciable cost of an asset equally over its estimated life, in either months or years. The double-declining-balance method involves accelerating the depreciation expense in the earlier years of the asset's life, while the units-of-production method focuses on how much the asset is actually used rather than time-based depreciation. The amortization method is typically used for intangible assets, such as patents or trademarks, rather than tangible property like equipment or buildings.

The Depreciation Method in Which the Depreciable Cost of an Asset