which statement accurately interprets a component of straight - line depreciation? the time period column…

which statement accurately interprets a component of straight - line depreciation? the time period column indicates the percentage by which the asset depreciates annually. accumulated depreciation represents the total amount by which the asset has decreased in value since its purchase. book value is the amount by which the asset decreases in value each year. the depreciation expense varies each year based on the assets usage.

which statement accurately interprets a component of straight - line depreciation? the time period column indicates the percentage by which the asset depreciates annually. accumulated depreciation represents the total amount by which the asset has decreased in value since its purchase. book value is the amount by which the asset decreases in value each year. the depreciation expense varies each year based on the assets usage.

Answer

Brief Explanations:

  • In straight - line depreciation, accumulated depreciation is the total amount by which an asset's value has decreased since its purchase. The time - period column doesn't indicate the annual depreciation percentage in straight - line method. Book value is the asset's cost minus accumulated depreciation, not the annual decrease in value. And in straight - line depreciation, the depreciation expense is constant each year, not varying based on usage.

Answer:

Accumulated depreciation represents the total amount by which the asset has decreased in value since its purchase.