Straight-line depreciation assumes that value is lost:
Correct Answer
C) At a constant rate over the item's life
Why this is correct: Straight-line depreciation is defined by a constant annual amount of value loss over the asset's useful life. This means the rate of depreciation is the same each year. Why the other choices are wrong: 'Slower in the early years than later' describes a decelerating pattern, not straight-line. 'Faster in the early years than later' describes an accelerated method like declining balance. 'Entirely in the final year of service' is not a recognized depreciation method. Exam tip: Straight-line = constant amount per period. Any mention of a curve, acceleration, or deceleration points to a different method.
Why This Is the Correct Answer
Why this is correct: Straight-line depreciation is defined by a constant annual amount of value loss over the asset's useful life. This means the rate of depreciation is the same each year. Why the other choices are wrong: 'Slower in the early years than later' describes a decelerating pattern, not straight-line. 'Faster in the early years than later' describes an accelerated method like declining balance. 'Entirely in the final year of service' is not a recognized depreciation method. Exam tip: Straight-line = constant amount per period. Any mention of a curve, acceleration, or deceleration points to a different method.
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