Using the diminishing-balance method results in higher expense in the early years, resulting in lower net income.

Name: Using the diminishing-balance method results in higher expense in the early years, resulting in lower net income.
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Question

Quizplus · Accepted Answer

The diminishing-balance method of depreciation accelerates the expense recognition into the early years of an asset's life, leading to higher expenses initially and thus lower net income during those years.

Using the Diminishing-Balance Method Results in Higher Expense in the Early