Which statement best describes the straight-line method of deprecation?
A)Depreciation is a fixed percentage of the carrying value of the asset.
B)Depreciation is allocated equally over each year of the asset's life.
C)Depreciation expense is greater at the beginning of the asset's life.
D)Both A and C.

Question

Quizplus · Accepted Answer

The straight-line method of depreciation allocates the same portion of an asset's cost as an expense each year of its useful life. This means that depreciation expense is allocated equally over each year of the asset's life. Option A describes the declining balance method of depreciation, and option C describes the sum-of-the-years'-digits method of depreciation.

Which Statement Best Describes the Straight-Line Method of Deprecation