Which of the Following Statements Is the Assumption on Which

question 23

Multiple Choice

Which of the following statements is the assumption on which straight-line depreciation is based?

• A) The operating efficiency of the asset decreases in later years.
• B) Service value declines as a function of time rather than use.
• C) Service value declines as a function of obsolescence rather than time.
• D) Physical wear and tear are more important than economic obsolescence.