Accounting for IGCSE & O level - Accounting Procedures (Section 19 - No. 9)

What is the formula for calculating depreciation using the straight-line method?
(Cost - Residual Value) / Useful Life
Cost * Depreciation Rate
(Cost - Accumulated Depreciation) * Depreciation Rate
Cost / Useful Life

Explanation

The straight-line method evenly distributes the depreciable amount (cost less residual value) over the asset's useful life.

Comments (0)

Advertisement