Which of the following are methods of depreciating an item?

The selected answer highlights two widely recognized methods of depreciation: straight-line depreciation and the declining-balance rate.

Straight-line depreciation is a method where the cost of an asset is evenly distributed over its useful life. This means that the same amount is deducted each year until the asset's value reaches its salvage value. It's straightforward and provides a consistent expense amount, making it easy to understand and apply.

On the other hand, the declining-balance method allocates a higher depreciation expense in the earlier years of the asset's life, gradually decreasing over time. This method is based on the diminishing value of the asset, reflecting the reality that many assets lose their value more quickly in the initial years.

Together, these methods offer varying approaches to calculate depreciation, providing businesses with flexibility depending on their financial strategies and asset usage. Understanding these methods is essential for accurate financial reporting and asset management.