What does straight-line mean on the CPA exam?

Straight-line. Spreading an amount evenly across the periods it covers. The default pattern for amortizing a cost when nothing suggests the benefit is consumed unevenly.

Which CPA exam sections use straight-line?

Straight-line appears in 6 CPA exam sections: AUD, BAR, FAR, ISC, REG, TCP.

Related terms

• operating lease: A lease that does not transfer control.
• capitalize: To record a cost as an asset and spread it over the periods it benefits, rather than expensing it immediately.

See also

• Every CPA exam term in this glossary
• The CPA exam, section by section
• A free FAR mock exam