An accelerated depreciation method that takes more expense in the first few years of the assets life
Question:
An accelerated depreciation method that takes more expense in the first few years of the asset’s life is ________.
A. Units-of-production depreciation
B. Double-declining-balance depreciation
C. Accumulated depreciation
D. Straight-line depreciation
Step by Step Answer:
Option b double declining balance Dep...View the full answer
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
Related Video
In accounting terms, depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery, etc. The land is the only exception that cannot be depreciated as the value of land appreciates with time. Depreciation allows a portion of the cost of a fixed asset to be the revenue generated by the fixed asset. This is mandatory under the matching principle as revenues are recorded with their associated expenses in the accounting period when the asset is in use. This helps in getting a complete picture of the revenue
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