An accelerated depreciation method: A) Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years. B) Results in reporting higher earnings every year. C) Is required for assets that become technologically obsolete before they physically wear out. D) Depreciates an asset over a shorter life than does the straight-line method.

Question

Natalia Freeman

Business

26 November, 15:51

An accelerated depreciation method: A) Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years. B) Results in reporting higher earnings every year. C) Is required for assets that become technologically obsolete before they physically wear out. D) Depreciates an asset over a shorter life than does the straight-line method.

+1

Answers (1)

Know the Answer?

Omari · Answer 1

The correct answer is letter "A": Recognizes more depreciation expense in the early years of an asset's useful life and less in the later years.

Explanation:

The accelerated depreciation method is an approach of calculating the use of an asset over time that allocates a higher value of the asset's aging during its first years since during that time the asset is more operative and allocates a smaller amount of the asset's use during later years when the asset is near its disposal. This method is used for accounting purposes. There are two main accelerated depreciation approaches: the Double Declining Balance (DDB) and the Sum-of-the-Year-Digits (SYD).