Which of the following statements about straight-line depreciation is not true?
A)Straight-line depreciation results in an equal amount of depreciation each period.
B)Straight-line depreciation is an application of the matching principle.
C)Straight-line depreciation results in the cost of the asset being expensed in the first year.
D)Straight-line depreciation requires estimates to be made by managers.

Question

Quizplus · Accepted Answer

Straight-line depreciation does not result in the cost of the asset being expensed in the first year. Instead, the cost of the asset is spread out evenly over its useful life.

Which of the Following Statements About Straight-Line Depreciation Is Not