Get to Know Advantages and Disadvantages of Straight Line Method of Depreciation
Depreciation can help in calculating the actual value of fixed assets at the end of each accounting year. Like any other accounting system it has different categories. But none of them include any cash transaction. The asset is already bought and then it is used for earning money with a cost of its useful lifetime. Among many such methods, one of the oldest one is known as Straight line method. You can get to know it from Advantages and Disadvantages of Straight Line Method Assignment Help. Visit us at our official website 24x7assignmenthelp.com.
How does straight line method perform?
We have already mentioned about this to be one of a depreciation method. But the question is how does it perform? From Advantages and Disadvantages of Straight Line Method Assignment Help you will notice that it is calculated depending on its value and useful lifetime. Since depreciation won’t ask for a direct decline of total value right after the purchase, you have to calculate them depending on their useful lifetime of serving.
In straight line, depreciation amount is equal at the end of each year. In this method, it is believed that in each year any asset using for earning profit will lose its usefulness equally. So when it will put to a graph, you can find a straight line. An accounting system will require same depreciation rate each year for declining value from that asset slowly.
Advantages of straight line method:
From a complete Advantages and Disadvantages of Straight Line Method Homework Help you can find out important points on its advantages:
Disadvantages of straight line method:
In this next stage of Advantages and Disadvantages of Straight Line Method Homework Help we will discuss disadvantages of this method:
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