Asked by stephan vailes on May 08, 2024
Verified
The diminishing-balance method of depreciation produces a(n)
A) decreasing depreciation expense each period.
B) increasing depreciation expense each period.
C) diminishing percentage rate each period.
D) constant amount of depreciation expense each period.
Diminishing-Balance
A method of calculating depreciation that results in larger depreciation charges in the early years of an asset's life and smaller charges in the later years.
Depreciation Expense
The allocation of the cost of a tangible asset over its useful life to account for the reduction in value due to wear and tear, age, or obsolescence.
- Differentiate between various depreciation techniques and their implications on finances.
Verified Answer
FZ
Fatimah ZakaryaMay 12, 2024
Final Answer :
A
Explanation :
The diminishing-balance method of depreciation results in a decreasing depreciation expense each period because it applies a constant rate to a decreasing book value.
Learning Objectives
- Differentiate between various depreciation techniques and their implications on finances.