The straight-line depreciation is?

A. a fixed sum set aside for the replacement of the asset
B. a fixed percentage of the balance of the asset at the end of the year
C. an estimated amount each year
D. an inctease in the value of the asset
E. a fixed percentage of the cost of the asset written off each year

Correct Answer:

Option E – a fixed percentage of the cost of the asset written off each year