Which statement below is TRUE of the straight-line method of depreciation?
A)It is a method that will provide higher amounts of depreciation expense in the early years of an asset's life and smaller amounts in the later years.
B)It is a method that results in unequal amounts of depreciation expense each year.
C)It is a method that is based upon the actual amounts of an asset used up each year,such as the number of miles a truck is driven.
D)It is a method that results in equal amounts of depreciation expense each year.

Question

Quizplus · Accepted Answer

The straight-line method of depreciation results in equal amounts of depreciation expense each year. This method spreads the cost of the asset evenly over its useful life, regardless of changes in the asset's productivity or wear and tear.

Which Statement Below Is TRUE of the Straight-Line Method of Depreciation