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What is the Straight-Line Method?
11. What is the Straight-Line Method?
- The amount of depreciation each year is fixed and equal.
- Way to work out the loss of value of an asset over time.
- System of recording larger depreciation expenses during the earlier years.
- An accelerated method for calculating an asset's depreciation.
Answer: B) Way to work out the loss of value of an asset over time.
Explanation:
The straight-line method is a strategy for computing devaluation and amortization, the most common way of discounting a resource throughout a more drawn-out timeframe than when it was bought.