单选题 Which of the following statements regarding depreciation methods is TRUE? A. Straight-line depreciation results in an increasing rate of return over the life of an asset. B. Straight-line depreciation causes an increase in reported income over time. C. Sinking fund depreciation is based on the theory that an asset generates an increasing rate of return over time.
【正确答案】 A
【答案解析】
Straight-line depreciation applies a constant amount of depreciation to each period over the life of the asset; this method yields an increasing rate of return over the life of this asset.
Year
Beginning carrying value
Straight-line depreciation
Net income
Rate of return on assets
1
$ 1000
$ 200
$ 300
30.0%
2
$ 800
$ 200
$ 300

37.5%

3
$ 600
$ 200
$ 300
50.0%
4
$ 400
$ 200
$ 300
75.0%