Question

What Are The Types Of Depreciation Methods?

Answer 1

Answer:

Explanation: There are several types of depreciation expense. The four most common methods of depreciation that impact revenues and assets are Straight line method, Units of production method, Sum of years digits method and Diminishing balancing method. The most commonly used method for calculating depreciation under generally accepted accounting principles or GAAP, is the Straight line method. This method is the simplest to calculate, results in fewer errors, stays the most consistent and transitions well from company's statement to tax returns.