Final answer:
If an asset generates revenues evenly over its useful life, the straight-line depreciation method should be used.
Step-by-step explanation:
If an asset generates revenues evenly over its useful life, the straight-line depreciation method should be used. This method allocates an equal amount of depreciation expense to each period of an asset's useful life. It is a commonly used depreciation method that provides a consistent and predictable expense for financial reporting purposes.
For example, let's say a company purchases a machine for $10,000 and expects it to have a useful life of 5 years. Using the straight-line method, the company would depreciate the machine by $2,000 ($10,000 / 5) each year.
This method is suitable when an asset's revenue-generating capacity remains constant over time. It is often used for assets such as buildings, vehicles, and equipment.