question 25 (1 point)\nstraight - line depreciation means:\nequal expense each period over the assets useful…

question 25 (1 point)\nstraight - line depreciation means:\nequal expense each period over the assets useful life.\nhigher expense in early years, lower later years.\nno expense recorded until disposal.\nexpense only when cash is paid.

question 25 (1 point)\nstraight - line depreciation means:\nequal expense each period over the assets useful life.\nhigher expense in early years, lower later years.\nno expense recorded until disposal.\nexpense only when cash is paid.

Answer

Brief Explanations:

Straight - line depreciation is a method of allocating the cost of an asset over its useful life. The formula for straight - line depreciation is (\text{Depreciation Expense}=\frac{\text{Cost}-\text{Salvage Value}}{\text{Useful Life}}). This formula results in the same amount of depreciation expense being recorded each period over the asset's useful life.

  • For the option "Higher expense in early years, lower later years", this is characteristic of methods like double - declining balance (an accelerated depreciation method), not straight - line.
  • The option "No expense recorded until disposal" is incorrect because under the matching principle (a fundamental accounting principle), the cost of an asset should be expensed over the periods it provides benefits (its useful life), not just at disposal.
  • The option "Expense only when cash is paid" is wrong. Depreciation is a non - cash expense. It is an allocation of the cost of an asset (which was paid in cash at the time of purchase or acquisition in most cases) over its useful life, not related to when cash is paid for an expense in the current period.

Answer:

Equal expense each period over the asset's useful life.