Multiple choice

In which of the following methods, is the cost of the asset written off in equal proportion during its useful economic life?

  1. Straight line method

  2. Written down value method

  3. Units of production method

  4. Sum of the years' - digits method
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Straight line method allocates the asset's cost (minus salvage value) evenly across its useful life. Each year receives an identical depreciation charge, making it the only method among the options that writes off cost in equal proportions. WDV method declines each year, units-of-production varies with usage, and SYD is accelerated (higher in early years).

Keep practicing — related questions