Asked by Anthony Ornelas on May 01, 2024
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The declining-balance method of depreciation is called an accelerated depreciation method because it depreciates an asset in a shorter period of time than the asset's useful life.
Declining-Balance Method
Depreciation method that applies a constant rate to the declining book value of the asset and produces a decreasing annual depreciation expense over the useful life of the asset.
Accelerated Depreciation
A method of depreciation that allows larger depreciation expenses in the early years of an asset's life and smaller expenses in the later years.
Useful Life
The estimated period over which a fixed asset is expected to be usable by a company, influencing depreciation calculations.
- Identify the differences in several depreciation techniques and their employment.
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Learning Objectives
- Identify the differences in several depreciation techniques and their employment.
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