Question \#2 of 15 If depreciation is taken in equal amounts over an asset's useful life, the method used is called straight-line depreciation. True False

Absolutely true! Straight-line depreciation is indeed the most common and straightforward method for expensing an asset's cost. It evenly spreads the cost of the asset over its estimated useful life, making accounting simpler and providing a consistent expense each period. Imagine a pie where you slice it into equal pieces each year—everyone gets the same amount! Now, here’s a fun twist: did you know that straight-line depreciation is often the method favored by companies for reporting purposes? It provides clarity to investors and analysts about how the company's assets are performing over time and helps smooth out fluctuations in financial statements. It's like a comforting routine in the chaotic world of finance!