Choose the statement about depreciation that is correct.
A)Yearly depreciation will always be higher using the straight-line method.
B)At the end of the asset's useful life, total depreciation charged will be the same whichever depreciation method is used.
C)Yearly depreciation will always be lower using the units of use method.
D)Yearly depreciation will always be higher using the reducing-balance method.

Question

Quizplus · Accepted Answer

At the end of the asset's useful life, total depreciation charged will be the same whichever depreciation method is used. While different depreciation methods result in different yearly depreciation amounts, they all eventually result in the same total depreciation charge over the asset's useful life.

Choose the Statement About Depreciation That Is Correct