Which depreciation method charges a larger depreciation expense in the earlier years, assuming the same depreciable amou...
Type: MCQ • Marks: 1
Which depreciation method charges a larger depreciation expense in the earlier years, assuming the same depreciable amount?
Options
A. Straight-line method
B. Written-down value/diminishing-balance method
C. Equal instalment method
D. Zero-depreciation method
Explanation
Under the diminishing-balance approach, depreciation is calculated on a declining carrying amount, so the expense is generally higher in earlier periods.
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UPSC Principal & Vice PrincipalManagement Finance Administration
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