Which of the following statements is true of the straight-line and/or reducing-balance methods (using the theoretical rate) of depreciation?
A) The two methods yield different amounts of total depreciation expense over the useful life of the asset.
B) The two methods yield the same amount of total depreciation expense over the useful life of the asset.
C) The straight-line method is applied to assets that wear and tear faster in the earlier years.
D) The reducing-balance method is applied to assets that generate more revenue in later years.

Question

Quizplus · Accepted Answer

Both the straight-line and reducing-balance methods of depreciation will result in the same total amount of depreciation over the asset's useful life. The difference between the two methods lies in the timing of the depreciation expense, not the total amount depreciated.

Which of the Following Statements Is True of the Straight-Line