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What is the Declining Balance Method?
12. What is the Declining Balance Method?
- The amount of depreciation each year is fixed and equal.
- Way to work out the loss of value of an asset over time.
- System of recording larger depreciation expenses during the earlier years.
- An accelerated method for calculating an asset's depreciation.
Answer: C) System of recording larger depreciation expenses during the earlier years.
Explanation:
In bookkeeping, the declining balance technique is a sped-up deterioration procedure for recording bigger devaluation costs during the prior long stretches of a resource's helpful life while recording more modest devaluation during its later years.