A depreciation method that produces larger depreciation expense during the early years of an asset's life and smaller expense in the later years is a(n):
A)Accelerated depreciation method
B)Book value depreciation method
C)Straight-line depreciation method
D)Units-of-production depreciation method
E)Unrealized depreciation method

Question

Quizplus · Accepted Answer

An accelerated depreciation method produces larger depreciation expense during the early years of an asset's life and smaller expense in the later years. This is because the asset is assumed to decline in value more rapidly in the early years, and less rapidly as it ages. Some examples of accelerated depreciation methods include the double-declining balance method and the sum-of-years-digits method.

A Depreciation Method That Produces Larger Depreciation Expense During the Early