A graph is set up with "yearly depreciation expense" on the vertical axis and "time" on the horizontal axis. Assuming linear relationships, how would the graphs for straight-line and declining-balance depreciation, respectively, be drawn?
A) vertically and sloping down to the right
B) vertically and sloping up to the right
C) horizontally and sloping down to the right
D) horizontally and sloping up to the right

Question

Quizplus · Accepted Answer

Straight-line depreciation results in a constant yearly depreciation expense over time, represented by a horizontal line. Declining-balance depreciation results in a decreasing yearly depreciation expense over time, represented by a line sloping down to the right.

A Graph Is Set Up with "Yearly Depreciation Expense" on the Vertical