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What is the importance of Straight Line Method?
Straight Line depreciation is a tool or method that tells the amount related to carrying of an asset till it is useful. It explains that a fixed asset of a company gets reduced value as time spends. Though it has purchased in a proper amount or its initial value was higher, but after a fixed time its value reduces. This is simple method and followed by every company.
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What are the various steps of a straight line method?
These are as follows –
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What are the terms related to this?
The different terms are as follows-
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