Discuss and differentiate straight line method of depreciation and accelerated method.
Depreciable assets lose value with time because of wear and tear, aging and obsolescence. This loss in value of tangible assets with time is called depreciation.
Straight line depreciation method is most commonly used. In this method, charges are spread evenly over the useful life of the asset. Depreciation charged every year in this method is constant. This allows for more income smoothing where income has gradual change over useful life of the asset without dips and highs
Discuss and differentiate straight line method of depreciation and accelerated meth