Question

Which of the following does NOT differ among the different depreciation methods?

a) Depreciation recognized during the last year of the asset's service life
b) Total depreciation recognized over the asset's service life
c) Depreciation recognized during the earlier years
d) All methods differ in these aspects

Answer 1

Different depreciation methods differ in the amount of depreciation recognized during the last year of the asset's service life, total depreciation recognized over the asset's service life, and depreciation recognized during the earlier years.

Step-by-step explanation:

The correct answer is d) All methods differ in these aspects.

Different depreciation methods vary in the amount of depreciation recognized during the last year of the asset's service life, total depreciation recognized over the asset's service life, and depreciation recognized during the earlier years.

For example, the straight-line depreciation method spreads the depreciation evenly over the asset's useful life, while the declining balance method recognizes greater depreciation in the earlier years and lesser depreciation in the later years.