When an asset loses value over time in equal amounts each period, this process is known as:

Compare straight-line depreciation to other methods: Declining balance depreciation involves reducing the asset's value by a fixed percentage each period, resulting in higher depreciation expenses in earlier periods. Units-of-production depreciation allocates depreciation based on the asset's usage or output. Amortization is used for intangible assets rather than tangible ones.

Identify the key characteristic of straight-line depreciation: The defining feature of straight-line depreciation is the equal allocation of depreciation expense across all periods of the asset's useful life.