All of the following statements are true regarding the declining-balance method of depreciation except
A) the declining-balance method ignores salvage value when calculating depreciation.
B) the declining-balance method produces lower depreciation expense in the early years as opposed to the later years.
C) the declining-balance method is compatible with the matching principle.
D) the declining-balance method is appropriate when assets lose their usefulness rapidly.

Question

Quizplus · Accepted Answer

The declining-balance method produces higher depreciation expense in the early years and lower in the later years, not the other way around.

All of the Following Statements Are True Regarding the Declining-Balance