The Underlying Assumption of the Straight-Line Method of Depreciation Is

question 40

Multiple Choice

The underlying assumption of the straight-line method of depreciation is:

• A) The asset's contribution to income is variable.
• B) The asset makes the same contribution to income each year.
• C) The asset's contribution to income relates mainly to obsolescence.
• D) The asset makes a higher contribution to income in the earlier years of its life.

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Definitions:

Communism

A political and economic ideology that aims at creating a classless society in which the means of production are owned and controlled by the community as a whole.

Capitalism

An economic system based on private ownership of the means of production and their operation for profit.

Capitalist States

Countries where the trade and industry are controlled by private owners for profit, rather than by the state.

Authoritarian States

Nations governed by a single ruler or a small group of individuals, where individual freedoms and democratic processes are limited.