Which of the following is a realistic assumption of the straight-line method of depreciation?
A) Depreciation is a function of usage.
B) The rate of return analysis is enhanced using the straight-line method.
C) The repair and maintenance expense is higher at the end of the asset's life.
D) The asset's economic usefulness is the same each year.

Question

Quizplus · Accepted Answer

The straight-line method assumes that the asset's economic usefulness and the depreciation expense are consistent each year over its useful life.

Which of the Following Is a Realistic Assumption of the Straight-Line