Which method of amortization is most appropriate for a situation in which most of the asset's future benefits occur in the earlier years?
A) Straight-line method
B) Unit of production method
C) Reducing balance method
D) All of the above are equally appropriate

Question

Quizplus · Accepted Answer

The reducing balance method, also known as the declining balance method, is most appropriate for assets that deliver most of their benefits in the earlier years. This method accelerates the expense recognition, reflecting the higher usage or benefit derived from the asset in its early life.

Which Method of Amortization Is Most Appropriate for a Situation