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Advantages and Disadvantages of Straight Line Methods Homework Help

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Why you need online assignment help for accountancy?

There are a number of accounting methods and all are very confusing and difficult to understand. Straight line is also one of the methods used to measure the depreciation in the value of assets over a period of time. The usefulness involved in this method can only be understood properly if you take advantages and disadvantages of straight line methods homework help. On the other hand it is also difficult to understand depreciation because depreciation can occur in any form. The meaning of depreciation is same but the type changes from one subject to the other.

To remove such confusion and get clear from any type of doubt regarding depreciation and its methods myhomeworkhelp.com is here to with its team to provide advantages and disadvantages of straight line methods Assignment help. By following certain steps and rules you can be a part of our site and take help from our experts anytime you want to.

What do you mean by depreciation?

Depreciation is the fall in the value of assets that a company hole in its account over a period of time. Depreciation can be measured using two methods and straight line method is one of those two methods.

What is a straight line method?

Straight line method is the easiest method of calculating depreciation in the value of assets over a period. This method uses the cost required in purchasing that asset and compares it with the usefulness of the asset. This method is one of the easiest, understandable and useful methods. Still student finds it confusing and look for advantages and disadvantages of straight line methods homework help as this method has some disadvantages which stop some companies to use this method.

Advantages:

  • This method is the simplest method which an ordinary person can understand easily. Steps involved in calculating it is very easy and quick.
  • The second advantage of this method is that it is calculated over the cost of the asset which can be easily divided over the life of the asset. So in this method we can even put a zero value for an asset.
  • This method helps you to know the total amount of depreciation that has occurred over the years in which the asset has been used.
  • It is the perfect method that can be used in small firms and firms that have old machines.

Disadvantages:

  • This method puts a lot of pressure on the use of the asset in the final years.
  • The company has to bear the cost of replacing the asset that has depreciated over a period of time.
  • The amount of depreciation that an asset goes through over a period of time is not invested anywhere outside so the company does not get the interest on that asset.
  • This method is illogical in calculating depreciation of an asset.

Thus to know the true value of using this method or any other method in measuring depreciation a student must have proper knowledge. Our advantages and disadvantages of straight line methods assignment help team provide that tips and guidelines so that you can be an expert in this topic.

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