Reducing balance depreciation charges more as an expense in the early years than in later years.

Name: Reducing balance depreciation charges more as an expense in the early years than in later years.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because reducing balance method of depreciation charges a fixed percentage of the book value of the asset as depreciation each year. Therefore, as the book value decreases over time, the amount of depreciation charged in later years is lower than in earlier years.

Reducing Balance Depreciation Charges More as an Expense in the Early