Question

The declining-balance method of depreciation is called an accelerated depreciation method because it depreciated an asset in a shorter period of time than the asset's useful life

1. true
2. false

Answer 1

The statement is false.

Step-by-step explanation:

The statement that the declining-balance method of depreciation is called an accelerated depreciation method because it depreciates an asset in a shorter period of time than the asset's useful life is false.

The declining-balance method is indeed an accelerated depreciation method, but not because it depreciates an asset in a shorter period of time. Instead, it's because it applies a higher depreciation rate in the earlier years and a lower rate in the later years. The total period used for the depreciation is still aligned with the asset's useful life, but the charge to expense is higher in the early years.