The most commonly used method of amortization is:
A)straight-line.
B)capital cost allowance.
C)declining-balance.
D)units-of-activity.

Question

Quizplus · Accepted Answer

Straight-line method is the most commonly used method of amortization as it is simple to calculate and provides equal deductions over the useful life of the asset. Capital cost allowance is a method used for tax purposes, declining-balance is a method that provides higher deductions in the early years of an asset's life, and units-of-activity method is used when an asset's usage can be tracked and measured.

The Most Commonly Used Method of Amortization Is