Which Statement Best Describes the Straight-Line Method of Deprecation

question 50

Multiple Choice

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.

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Definitions:

At-risk Amount

The amount of money an investor can actually lose from an investment, often used to limit losses in activities where money is at risk.

Passive Activities

Economic activities in which an individual participates without materially managing or operating them, often associated with rental properties or businesses in which the individual does not actively engage.

Income

Money received, especially on a regular basis, for work or through investments.

Medical Expenses

Amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, or amounts paid for treatments affecting any part or function of the body.