Straight-line depreciation will result in a higher profit than the double diminishing-balance method in the early years of an asset's life.

Question

Quizplus · Accepted Answer

Straight-line depreciation spreads the cost of an asset evenly over its useful life, resulting in a consistent expense amount each year. In contrast, the double declining balance method accelerates depreciation in the early years, resulting in higher depreciation expenses and, consequently, lower profits in those years compared to the straight-line method.

Straight-Line Depreciation Will Result in a Higher Profit Than the Double