Choose the statement that best describes the way the reducing-balance method charges depreciation.
A) Yearly depreciation is lower at the beginning of the asset's life.
B) Yearly depreciation is greater at the beginning of the asset's life.
C) Yearly depreciation is the same in each year of the asset's life.
D) Yearly depreciation expense is greater at the end of the asset's life.

Question

Quizplus · Accepted Answer

The reducing-balance method charges a higher percentage of depreciation on the diminishing book value of the asset each year. Therefore, the yearly depreciation is greater at the beginning of the asset's life.

Choose the Statement That Best Describes the Way the Reducing-Balance