Question

When an accelerated depreciation method is used to calculate depreciation expense:

A) Higher expenses in early years
B) Lower expenses in early years
C) Consistent expenses over time
D) Not applicable

Answer 1

Using an accelerated depreciation method results in higher depreciation expenses during the early years of an asset's life, which gradually decrease over time.

Step-by-step explanation:

When an accelerated depreciation method is used to calculate depreciation expense, the result is A) Higher expenses in early years. Accelerated depreciation methods, such as the Double Declining Balance method or the Sum-of-the-Years' Digits method, front-load the depreciation expenses in the earlier years of an asset's useful life. This creates higher expenses initially and gradually decreasing expenses over the asset's life span.