The double-diminishing-balance

Question

Quizplus · Accepted Answer

The double-diminishing-balance method is an accelerated depreciation method, meaning it results in more depreciation in the early years of an asset's use compared to other depreciation methods. This is because it applies a higher rate of depreciation to the asset's book value in the early years, which decreases over time. While this method is acceptable under GAAP, companies must consider the impact of using an accelerated method on their financial statements and tax liability.

The Double-Diminishing-Balance