Q170
Under which depreciation method, the amount of depreciation expenses remains same throughtout the life of the asset?
A.
Straight line method
AnswerB.
Reducing balance method
C.
Number of units produced method
D.
Machine hours method
Answer: Option A
Solution
Answer: Option A
Solution:
Under Straight line method, the amount of depreciation expenses remains same throughtout the life of the asset. In a straight line depreciation method, it is assumed that the asset uniformly depreciates over its useful life.