Double declining-balance method is used in the first year when straight-line should be used.This error would cause:

Question

Quizplus · Accepted Answer

The double declining-balance method results in higher depreciation expenses in the earlier periods of the asset's life. This means that if it is used when straight-line should be used, the period's net income will be understated as the higher depreciation expenses will be recorded as an expense in those periods.

Double Declining-Balance Method Is Used in the First Year When