Which of the following statements regarding straight-line depreciation is correct?
A) Straight-line depreciation is by far the most common method of depreciation used in the U.S.
B) When the straight-line method is used to compute depreciation, an asset's carrying value remains constant over the life of the asset.
C) Straight-line depreciation is an approved method to allocate the cost of an asset to expense and it serves as a measure of the physical decline in the asset.
D) The straight line method of depreciation results in a straight-line increase of depreciation expense over the life of an asset.

Question

Quizplus · Accepted Answer

Straight-line depreciation is the most common method used in the U.S. It allocates an equal amount of depreciation expense each year over the asset's useful life.

Which of the Following Statements Regarding Straight-Line Depreciation Is Correct