Which one of the following statements is true?
A)One objective of depreciating an asset is to provide funds for replacement.
B)GAAP requires the use of either straight-line or declining-balance depreciation.
C)Straight-line depreciation results in a decreasing rate of return on total assets.
D)Typically, the sum-of-the-years'-digits method will result in less depreciation expense in the year of acquisition than will the double-declining-balance method.

Question

Quizplus · Accepted Answer

The sum-of-the-years'-digits method generally results in less depreciation expense in the first year compared to the double-declining-balance method, which accelerates depreciation more aggressively in the early years.

Which One of the Following Statements Is True