If management wanted to show an increasing income over the life of an asset which method of amortization should they chose?
A)Capital cost allowance
B)Declining-balance
C)Units-of-activity
D)Straight-line

Question

Quizplus · Accepted Answer

The declining-balance method of amortization results in higher depreciation expenses in the early years of an asset's life and lower expenses in the later years. This can lead to showing an increasing income over the life of the asset as the depreciation expense decreases over time.

If Management Wanted to Show an Increasing Income Over the Life