Which of the following is a method of calculating depreciation?

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Question: Which of the following is a method of calculating depreciation?

Options:

Correct Answer: Straight-line method

Solution:

The straight-line method is a common method used to calculate depreciation.

Which of the following is a method of calculating depreciation?

Which of the following is a method of calculating depreciation?

Step 1: Understand what depreciation means. Depreciation is the reduction in value of an asset over time.
Step 2: Learn about different methods of calculating depreciation. There are several methods, but we will focus on the straight-line method.
Step 3: Know how the straight-line method works. This method spreads the cost of the asset evenly over its useful life.
Step 4: Identify the formula for the straight-line method. The formula is: (Cost of Asset - Salvage Value) / Useful Life.
Step 5: Apply the formula to calculate depreciation for an asset using the straight-line method.

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