The straight-line depreciation method allocates an equal amount of depreciation expense to each year of the depreciation period.

Question

Quizplus · Accepted Answer

This statement is true. The straight-line depreciation method calculates depreciation expense by dividing the cost of the asset (less its salvage value) by the number of years in its useful life. This results in an equal amount of depreciation expense being allocated to each year of the asset's depreciation period.

The Straight-Line Depreciation Method Allocates an Equal Amount of Depreciation