5. True or false. Suppose an asset is being depreciated linearly. Then the rate of depreciation of the asset is given by the negative of the slope of the depreciation line.

Question

5.	True or false. Suppose an asset is being depreciated linearly. Then the rate of depreciation of the asset is given by the negative of the slope of the depreciation line.

nurali · Answer

i think It's True. As time passes, the asset is written off the books in a linear way (as in 10% per annum, for example). This example would result in a slope of -1/10 (down 1, over 10).

nurali · Answer

Welcome to Openstudy.

tkhunny · Answer

Very odd question.  What does "Rate" mean?  It can mean a percentage (which will not be linear) or a flat amount (which will be linear).