Which of the following is the appropriate journal entry to recognise depreciation expense calculated using the diminishing balance method?

Question

Quizplus · Accepted Answer

The appropriate journal entry to recognise depreciation expense calculated using the diminishing balance method is to debit Depreciation Expense and credit Accumulated Depreciation. This is because the diminishing balance method is a method of accelerated depreciation, meaning that a higher portion of the total depreciation expense is recognised in earlier years of an asset's useful life. Therefore, the balance in the Accumulated Depreciation account will be higher at the beginning of an asset's life, and decrease over time as the asset's value is gradually depreciated.

Which of the Following Is the Appropriate Journal Entry to Recognise